Global| Feb 23 2021U.S. Energy Prices Surge as Texas Freeze Limits Supply
by:Tom Moeller
|in:Economy in Brief
Summary
• Gasoline prices jump with refinery shutdowns. • Oil prices surge also as production is cut back. • Natural gas output is notably reduced with deep freeze in South. The price of regular gasoline strengthened to $2.63 per gallon (6.8% [...]
• Gasoline prices jump with refinery shutdowns.
• Oil prices surge also as production is cut back.
• Natural gas output is notably reduced with deep freeze in South.
The price of regular gasoline strengthened to $2.63 per gallon (6.8% y/y) in the week ended February 22, its highest level since January 2020. The price increased from $2.50 per gallon in the previous week. The spot market price surged to $1.83 per gallon in week prior and also equaled last year's high. Haver Analytics adjusts the gasoline price series for normal seasonal variation. The seasonally adjusted price rose to $2.83 per gallon last week from $2.71 in the previous week.
West Texas Intermediate crude oil prices also strengthened to an average of $60.23 per barrel (13.4% y/y) in the week ended February 19 from $58.54 per barrel in the previous week. This was the highest price since early-January 2020. The price rose to $61.49 per barrel yesterday. The average price of Brent crude oil increased to $63.50 per barrel (8.6% y/y) last week from $61.31 in the previous week. The price rose to $65.15 yesterday.
The price of natural gas soared for a second week, rising to $12.18/mmbtu (509.0% y/y) in the week ended February 19 from $4.63/mmbtu in the previous week. This is the highest price since July 2008. Yesterday, the price pulled back to $3.16/mmbtu as pipelines opened up again.
In the four weeks ended February 12, gasoline demand fell 5.7% y/y while demand for all petroleum products rose 5.4% y/y. Crude oil input to refineries fell 8.6% y/y. Gasoline inventories fell 0.8% y/y. The supply of gasoline in inventory in the week ended February 12 was 32.3 days, up from a recent low of 26.1 days in early-October.
These data are reported by the U.S. Department of Energy. The price data can be found in Haver's WEEKLY and DAILY databases. Greater detail on prices, as well as the demand, production and inventory data are in USENERGY.
| Weekly Energy Prices | 02/22/21 | 02/15/21 | 02/08/21 | Y/Y % | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|---|---|
| Retail Gasoline ($ per Gallon, Regular, Monday) | 2.63 | 2.50 | 2.46 | 6.8 | 2.24 | 2.57 | 2.27 |
| Light Sweet Crude Oil, WTI ($ per bbl, Previous Week's Average) | 60.23 | 58.54 | 55.41 | 13.4 | 39.43 | 56.91 | 64.95 |
| Natural Gas ($/mmbtu, LA, Previous Week's Average) | 12.18 | 4.63 | 3.12 | 509.0 | 2.03 | 2.57 | 3.18 |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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