Global| Nov 11 2008U.S. Gasoline Prices Lowest Since February 2007. Demand Fell Further
by:Tom Moeller
|in:Economy in Brief
Summary
The retail price for a gallon of regular gasoline fell by another eighteen cents last week after the twenty six cent drop during the prior week, according to the U.S. Department of Energy survey. The price of $2.22 was the lowest [...]
The retail price for a gallon of regular gasoline fell by another eighteen cents last week after the twenty six cent drop during the prior week, according to the U.S. Department of Energy survey. The price of $2.22 was the lowest since February 2007. Prices have now fallen $1.89 per gallon, or by nearly one-half, 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 $2.28 per gallon.
Yesterday, the spot market price for a gallon of regular gasoline fell eight cents from last week's average to $1.40. In futures trading the November contract closed down further at $1.37 per gallon.
Weekly gasoline prices can be found in Haver's WEEKLY database. Daily prices are in the DAILY database.
The demand for gasoline fell by 3.3% y/y, according to the U.S. Department of Energy. 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 has softened, falling 7.0% y/y.
These DOE figures are available in Haver's OILWKLY database.
The price for a barrel of West Texas Intermediate crude oil fell further last week to an average $64.31 per barrel, down 56% since the peak in July of $145.66. In futures trading yesterday, the two-month price for crude oil was even lower at $63.27 per barrel.
Last week, prices for natural gas ticked up w/w to $6.74 per mmbtu (-3.3% y/y) as seasonal factors began to lift the price. The average price this month was nearly one-half below the high for natural gas prices in early-July of $13.19/mmbtu.
If Exchange Rates Are Random Walks, Then Almost Everything We Say About Monetary Policy Is Wrong from the Federal Reserve Bank of Minneapolis can be found here.
| Weekly Prices | 11/10/08 | 11/03/08 | Y/Y | 2007 | 2006 | 2005 |
|---|---|---|---|---|---|---|
| Retail Regular Gasoline ($ per Gallon) | 2.22 | 2.40 | -28.5% | 2.80 | 2.57 | 2.27 |
| Light Sweet Crude Oil, WTI ($ per bbl.) | 64.31 | 65.68 | -32.5% | 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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