Global| Mar 24 2020U.S. Energy Product Costs Plumb New Lows
by:Tom Moeller
|in:Economy in Brief
Summary
The per barrel price of West Texas Intermediate crude oil has weakened due to reduced demand from around the globe and increases in supply. It declined to $23.36 yesterday from an average $24.79 last week after averaging $32.34 in the [...]
The per barrel price of West Texas Intermediate crude oil has weakened due to reduced demand from around the globe and increases in supply. It declined to $23.36 yesterday from an average $24.79 last week after averaging $32.34 in the prior week. It was the lowest price since March 2002. Prices have fallen from $61.75 averaged in the first week of January. The price of Brent crude oil weakened to $27.07 per barrel yesterday from an average of $28.09 last week, down from $34.97 in the prior week. The price has fallen from a $67.38 high averaged in the last week of December
Retail gasoline prices declined to $2.12 per gallon (-19.2% y/y) in the week ended March 23 from $2.25 per gallon in the previous week. Prices remained below an early-May peak of $2.90 per gallon. Haver Analytics adjusts prices for seasonal variation. The seasonally adjusted gasoline price fell to $2.14 per gallon.
The average price of natural gas fell to $1.79/mmbtu (-37.4% y/y) last week and reversed the prior week's increase to $1.87/mmbtu. The price weakened to $1.70/mmbtu yesterday and remained below the peak of $2.81/mmbtu early in November.
In the four weeks ending March 13, gasoline demand increased 2.1% y/y, while total petroleum product demand improved 0.3% y/y. Gasoline inventories eased 0.3% y/y and inventories of all petroleum products increased 1.5% y/y. Crude oil input to refineries declined 1.4% y/y in the past four weeks.
These data are reported by the U.S. Department of Energy. The price data can be found in Haver's WEEKLY and DAILY databases. Greater detail on prices, as well as the demand, production and inventory data, along with regional breakdowns, are in OILWKLY.
Federal Reserve issues FOMC statement: https://www.federalreserve.gov/newsevents/pressreleases/files/monetary20200323a1.pdf
| Weekly Energy Prices | 03/23/20 | 03/16/20 | 03/09/20 | Y/Y % | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|
| Retail Gasoline ($ per Gallon Regular, Monday Price, End of Period) | 2.12 | 2.25 | 2.38 | -19.2 | 2.57 | 2.27 | 2.47 |
| Light Sweet Crude Oil, WTI ($ per bbl, Previous Week's Average) | 24.79 | 32.34 | 45.55 | -58.3 | 56.91 | 64.95 | 50.87 |
| Natural Gas ($/mmbtu, LA, Previous Week's Average) | 1.79 | 1.87 | 1.80 | -37.4 | 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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