What is the relationship between inventories and price of crude oil?

And if price of oil goes up, would we say bullish or bearish ? With respect to the recovery ? Can anyone also tell me what are the differences of each type of crude oil ?

One Response to “What is the relationship between inventories and price of crude oil?”

  1. Jeff Says:

    Crude oil has many different chemical compositions that allow for cheaper or more expensive processing.
    http://en.wikipedia.org/wiki/Benchmark_%28crude_oil%29

    In general a high price of crude means bearish (prone to recession) and higher inventories (products not being sold). It is harder to recover during high oil prices because of increased costs.