Global| Dec 09 2008U.S. Gasoline Prices Fell Further to Their Lowest Since 2004
by:Tom Moeller
|in:Economy in Brief
Summary
The pump price for a gallon of regular gasoline fell last week to $1.70, the lowest level since early 2005 according to the U.S. Department of Energy survey. The latest price was down eleven cents per gallon from the prior week and [...]
The pump price for a gallon of regular gasoline fell last week to $1.70, the lowest level since early 2005 according to the U.S. Department of Energy survey. The latest price was down eleven cents per gallon from the prior week and that was down by more than half since the peak early this past July. The latest decline was accompanied by a drop in the average price for all grades of gasoline to $1.76 per gallon.
Yesterday, the spot market price for a gallon of regular gasoline was up slightly from Friday's level but the six cent rise to $92 cents per gallon recouped just roughly half of Friday's decline. Last week spot prices averaged $1.02 per gallon.
Weekly gasoline prices can be found in Haver's WEEKLY database. Daily prices are in the DAILY database.
The U.S. Department of Energy reported that the demand for gasoline fell by 3.5% y/y. The rate of decline has bottomed out recently but the decline is still the fastest since late-1995 (the latest four weeks versus the same four weeks last year). The demand for all petroleum products also fell 6.2% y/y.
These DOE figures are available in Haver's OILWKLY database.
The price for a barrel of West Texas Intermediate crude oil last week fell by roughly seven dollars from last week's average to $45.50 per barrel, down by two-thirds since the peak in July of $145.66. In futures trading yesterday, the two-month price for crude oil stood at $46.36.
Last week, prices for natural gas fell to $6.44 per mmbtu (-10.1% y/y). The latest average price was nearly one-half below the high for natural gas prices in early-July of $13.19/mmbtu.Assessing the Potential for Instability in Financial Market is yesterday's speech by Fed Governor Randall S. Kroszner and it can be found here.
| Weekly Prices | 12/08/08 | 12/01/08 | Y/Y | 2007 | 2006 | 2005 |
|---|---|---|---|---|---|---|
| Retail Regular Gasoline ($ per Gallon) | 1.70 | 1.81 | -43.4% | 2.80 | 2.57 | 2.27 |
| Light Sweet Crude Oil, WTI ($ per bbl.) | 45.50 | 52.50 | -48.7% | 72.25 | 66.12 | 56.60 |
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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