Global| Dec 02 2008U.S. Gasoline Prices Lowest Since 2005
by:Tom Moeller
|in:Economy in Brief
Summary
Last week, the pump price for a gallon of regular gasoline was at its lowest level since early 2005 according to the U.S. Department of Energy survey. At $1.81 per gallon prices fell roughly 60 cents per gallon during just the last [...]
Last week, the pump price for a gallon of regular gasoline was at its lowest level since early 2005 according to the U.S. Department of Energy survey. At $1.81 per gallon prices fell roughly 60 cents per gallon during just the last four weeks and they have now fallen $2.30 per gallon, or by 56%, since their peak early this past July. The latest decline was accompanied by a drop in the average price for all grades of gasoline to $1.87 per gallon.
Yesterday, the spot market price for a gallon of regular gasoline fell another four cents from last week's average to $1.14. In futures trading the December contract closed down further at $1.11 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 3.3% 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 6.6% 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 ticked up to an average $52.50 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 was even lower at $49.28 per barrel.
Last week, prices for natural gas were stable at $6.66 per mmbtu (-10.4% y/y). The latest average price was nearly one-half below the high for natural gas prices in early-July of $13.19/mmbtu.
Federal Reserve Policies in the Financial Crisis is yesterday's speech by Fed Chairman Ben S. Bernanke and it can be found here.
| Weekly Prices | 12/01/08 | 11/24/08 | Y/Y | 2007 | 2006 | 2005 |
|---|---|---|---|---|---|---|
| Retail Regular Gasoline ($ per Gallon) | 1.81 | 1.89 | -40.8% | 2.80 | 2.57 | 2.27 |
| Light Sweet Crude Oil, WTI ($ per bbl.) | 52.50 | 52.34 | -43.2% | 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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