Global| Oct 12 2011U.S. Gasoline Prices Remain Weak Although Crude Oil Backs Up Sharply
by:Tom Moeller
|in:Economy in Brief
Summary
Last week the pump price for a gallon of regular gasoline slipped one penny to $3.42. That slip followed sharp declines since late-May that have amounted to fifty-four cents. Retail prices usually start to ease this time of year with [...]
Last week the pump price for a gallon of regular gasoline slipped one penny to $3.42. That slip followed sharp declines since late-May that have amounted to fifty-four cents. Retail prices usually start to ease this time of year with reduced seasonal demand. To account for this pattern, Haver Analytics calculates seasonal factors. As a result, the adjusted gasoline price rose slightly to $3.43 per gallon. Yesterday, the wholesale price for a gallon of unleaded rose to $2.88, its highest level in two weeks.
Crude oil prices backed up yesterday to $85.81 versus a low of $75.67 touched last week. For last week as a whole, crude prices averaged $79.71 per barrel versus the prior week's $81.45 for a barrel of WTI. They remained down from the late-April peak of $113.93. Brent crude remained relatively expensive versus WTI and yesterday sold for $110.27 per barrel versus last week's low of $100.74. Prices peaked earlier at $126.21.
Gasoline demand fell 1.7% on average during the last four weeks versus last year. Demand for residual fuel oil, used for heating, jumped 27.9% y/y but distillate demand rose just 2.0%. Inventories of crude oil and petroleum products fell 5.1% year-to-year compared to 10.0% growth in the middle of 2009.
Finally, natural gas prices continued lower to $3.53 per mmbtu. That's down sharply from the early-June high of $4.86 and prices remained lower than last year's early-January peak of $6.50. Yesterday, prices held at $3.53.
The energy price data are reported by the U.S. Department of Energy and can be found in Haver's WEEKLY database. The daily figures are in DAILY and the gasoline demand figures are in OILWKLY
| Weekly Price | 10/10/11 | 10/3/11 | 9/26/11 | Y/Y% | 2010 | 2009 | 2008 |
|---|---|---|---|---|---|---|---|
| Retail Regular Gasoline ($ per Gallon, Regular) | 3.42 | 3.43 | 3.51 | 21.2 | 2.78 | 2.35 | 3.25 |
| Light Sweet Crude Oil, WTI ($ per bbl.) | 79.71 | 81.45 | 83.77 | -3.2 | 79.51 | 61.39 | 100.16 |
| Natural Gas ($/mmbtu) | 3.53 | 3.81 | 3.78 | 1.0 | 4.40 | 3.95 | 8.88 |
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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