Global| Jan 22 2009U.S. Gasoline Prices Up Again
by:Tom Moeller
|in:Economy in Brief
Summary
Regular gasoline prices moved higher last week for the third consecutive period. They rose six cents to an average $1.85 per gallon after the prior week's ten cent gain, according to the U.S. Department of Energy survey. The latest [...]
Regular gasoline prices moved higher last week for the third consecutive period. They rose six cents to an average $1.85 per gallon after the prior week's ten cent gain, according to the U.S. Department of Energy survey. The latest level was the highest price since late November. Yesterday, the spot market price for regular gasoline was up again to $1.20 per gallon which was its highest level since late-November.
Weekly gasoline prices can be found in Haver's WEEKLY database. Daily prices are in the DAILY database.
Demand continued quite weak for gasoline in reaction to the economy's weakness. The U.S. Department of Energy reported that the demand for gasoline fell by 3.9% during the latest four weeks, nearly the fastest rate of decline since late-1995 (the latest four weeks versus the same four weeks in 2008). The demand for all petroleum products also fell sharply, by 4.0%. These numbers are available in Haver's OILWKLY database.
The source for that reduced demand for gasoline is the cutback in vehicle miles driven which have fallen 3.5% during the twelve months ended October. The decline of roughly this magnitude, sustained as it has been for most of last year, is unprecedented. These Department of Transportation figures are available in Haver's OGJ database.
The price for a barrel of West Texas Intermediate crude oil retraced most of the gains during the prior two weeks and fell to $36.91 per barrel. Prices reached their high of $145.66 last July. In futures trading yesterday, the one-month price for crude oil moved back up to $43.55.
Last week, prices for natural gas slipped to $5.40 per mmbtu (-35.0% y/y). The latest average price was almost 50% below natural gas prices in early-July of $13.19/mmbtu.
Understanding Monetary Policy Implementation from the Federal Reserve Bank of Richmond can be found here.
| Weekly Prices | 01/19/09 | 01/12/09 | Y/Y | 2008 | 2007 | 2006 |
|---|---|---|---|---|---|---|
| Retail Regular Gasoline ($ per Gallon) | 1.85 | 1.78 | -38.8% | 3.25 | 2.80 | 2.57 |
| Light Sweet Crude Oil, WTI ($ per bbl.) | 36.91 | 44.51 | -59.7% | 100.16 | 72.25 | 66.12 |
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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