Global| Sep 09 2020U.S. Energy Prices Weaken
by:Tom Moeller
|in:Economy in Brief
Summary
• Gasoline prices slip marginally. • Crude oil prices ease, then break sharply lower. • Natural gas prices decline sharply. Regular gasoline prices slipped to $2.21 per gallon (-13.3% y/y) in the week ended September 7 after rising to [...]
• Gasoline prices slip marginally.
• Crude oil prices ease, then break sharply lower.
• Natural gas prices decline sharply.
Regular gasoline prices slipped to $2.21 per gallon (-13.3% y/y) in the week ended September 7 after rising to $2.22 per gallon in the previous week. Prices remained at the highest level since the third week of March and have improved from the late-April low of $1.77 per gallon. Haver Analytics adjusts the gasoline price series for usual seasonal variation. The seasonally adjusted price fell to $2.15 per gallon last week from $2.18 per gallon the previous week. In the week ended 1, the spot market price for regular unleaded gasoline fell to $1.24 per gallon (-17.5% y/y).
The price for a barrel of West Texas Intermediate crude oil fell to an average of $41.60 per barrel (-25.4% y/y) in the week ended September 4 from $43.00 per barrel in the previous week. It was the lowest price since early-August. Yesterday, the price tumbled to $36.76 per barrel, the lowest price since mid-June. Brent crude oil prices declined to an average $44.40 per barrel (-26.0% y/y) last week from $45.58 per barrel in the previous week. Yesterday, the price dropped to $39.92 per barrel, also the lowest price since mid-June.
Natural gas prices weakened to $2.16/mmbtu (-12.2% y/y) in the week ended September 4 from $2.52/mmbtu in the previous week. They reversed earlier strength and settled at the lowest level since early last month. Yesterday, prices eased to $2.30/mmbtu.
In the four weeks ended August 28, gasoline demand declined 8.9% y/y. Total petroleum product demand fell 15.9% y/y. Crude oil input to refineries was down 17.3% y/y in the past four weeks, but generally it has risen since mid-May. Gasoline inventories were 2.3% above a year ago and inventories of all petroleum products were 7.0% higher y/y.
These data are reported by the U.S. Department of Energy. The price data can be found in Haver's WEEKLY and DAILY databases. Greater detail on prices, as well as the demand, production and inventory data, along with regional breakdowns, are in OILWKLY.
| Weekly Energy Prices | 09/07/20 | 08/31/20 | 08/24/20 | Y/Y % | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|
| Retail Gasoline ($ per Gallon Regular, Monday Price, End of Period) | 2.21 | 2.22 | 2.18 | -13.3 | 2.57 | 2.27 | 2.47 |
| Light Sweet Crude Oil, WTI ($ per bbl, Previous Week's Average) | 41.60 | 43.00 | 42.72 | -25.4 | 56.91 | 64.95 | 50.87 |
| Natural Gas ($/mmbtu, LA, Previous Week's Average) | 2.16 | 2.52 | 2.39 | -12.2 | 2.57 | 3.18 | 2.99 |
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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