Global| May 25 2010U.S. Gasoline Prices Fall To Lowest Since March
by:Tom Moeller
|in:Economy in Brief
Summary
The coming summer driving season hasn't helped U.S. gasoline prices as they've dipped from recent highs. Petroleum prices generally weakened with evidence that forward economic momentum, globally, has lost steam. Those worries lowered [...]
The coming summer driving season hasn't helped U.S. gasoline prices as they've dipped from recent highs. Petroleum prices generally weakened with evidence that forward economic momentum, globally, has lost steam. Those worries lowered the pump price of regular gasoline to $2.79 last week yet prices remained up more than three-quarters since the December 2008 low. Yesterday the spot market price for a gallon of regular gasoline fell further from last week's average. The figures are reported by the U.S. Department of Energy and can be found in Haver's WEEKLY & DAILY databases.
Lower crude oil costs have very much reflected these concerns over the worldwide economic recovery. The average price for a barrel of light sweet crude (WTI) fell last week to $69.02 versus the recent high of $84.23 averaged during April. Yesterday, crude prices fell further to $66.88 per barrel.
Demand for gasoline hasn't yet much reflected the prospects for economic weakness. It rose 1.6% last week versus one year ago. That compares to a 3.0% decline in early-February. The demand for residual fuel oil rose a lesser 7.7% and distillate demand surged 9.3% y/y. That's improved from a 12.3% decline during February. Inventories of crude oil and petroleum products improved into May but still were up just a modest 0.2% from one year ago.
U.S. natural gas prices strengthened last week to an average $4.25 per mmbtu (2.9% y/y). Prices reached a high of $6.50 early in January. Nevertheless, prices remained nearly double the September low.
The energy price data can be found in Haver's WEEKLY database while the daily figures are in DAILY. The gasoline demand figures are in OILWKLY.
| Weekly Prices | 05/24/10 | 05/17/10 | 05/10/10 | y/y | 2009 | 2008 | 2007 |
|---|---|---|---|---|---|---|---|
| Retail Regular Gasoline ($ per Gallon, Regular) | 2.79 | 2.86 | 2.91 | 14.4% | 2.35 | 3.25 | 2.80 |
| Light Sweet Crude Oil, WTI ($ per bbl.) | 69.02 | 74.97 | 80.22 | 14.1% | 61.39 | 100.16 | 72.25 |
| Natural Gas Price ($/mmbtu) | 4.25 | 4.20 | 3.96 | 12.9% | 3.95 | 8.88 | 6.97 |
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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