Global| Mar 01 2011U.S. Gasoline Prices Surge With Crude Oil
by:Tom Moeller
|in:Economy in Brief
Summary
Strength in energy prices continues unabated. The pump price for regular gasoline last week surged nineteen cents to $3.38 per gallon, the highest since October-2008 and double the December-2008 low of $1.61. Typically, pump prices [...]
Strength in energy prices continues unabated. The pump price for regular gasoline last week surged nineteen cents to $3.38 per gallon, the highest since October-2008 and double the December-2008 low of $1.61. Typically, pump prices decline this time of year due to lessened seasonal demand. To account for this pattern, Haver Analytics calculates seasonal factors and the adjusted gasoline price moved higher to $3.41 per gallon. Yesterday, the spot market price for a gallon of regular gasoline increased further to $2.70 from an average $2.67 last week.
Crude oil prices, up with political unrest in the Middle East, jumped roughly $10.00 last week to $95.95 for a barrel of crude oil (WTI). The price compares to an average $79.51 during all of last year. Yesterday prices rose further to $96.97 per barrel. Brent crude oil prices surged as well to $111.48 from $98.63 at the end of January.
Demand for gasoline ticked up 0.1% last week versus last year. The demand for residual fuel oil, used for heating, surged 10.1% and distillate demand rose 2.7% y/y. Inventories of crude oil and petroleum products rose a greatly lessened 2.7% during the last twelve months, down from a peak 11% in September 2009.
Lastly, natural gas prices fell again, last week to an average of $3.83 per mmbtu. Yesterday, prices recovered a bit to $3.94 but remained down from last year's early-January high of $6.50.
The energy price data are reported by the U.S. Department of Energy and can be found in Haver's WEEKLY database. The daily figures are in DAILY and the gasoline demand figures are in OILWKLY
| Weekly Price | 2/28/11 | 2/21/11 | 2/14/11 | Y/Y% | 2010 | 2009 | 2008 |
|---|---|---|---|---|---|---|---|
| Retail Regular Gasoline ($ per Gallon, Regular) | 3.38 | 3.19 | 3.14 | 25.2 | 2.78 | 2.35 | 3.25 |
| Light Sweet Crude Oil, WTI ($ per bbl.) | 95.95 | 85.34 | 86.69 | 21.1 | 79.51 | 61.39 | 100.16 |
| Natural Gas ($/mmbtu) | 3.83 | 3.89 | 4.16 | -21.5 | 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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