Global| Apr 27 2010U.S. Petroleum Prices Maintain Their Higher Level
by:Tom Moeller
|in:Economy in Brief
Summary
April has been a firm month for energy prices and a gallon of regular gasoline averaged its highest price since October 2008. Last week, it remained near the prior week's high of $2.85 which was up by 77% since the December, 2008 low. [...]
April has been a firm month for energy prices and a gallon of regular gasoline averaged its highest price since October 2008. Last week, it remained near the prior week's high of $2.85 which was up by 77% since the December, 2008 low. Yesterday, the spot market price for a gallon of regular gasoline held onto its level late last week. The figures are reported by the U.S. Department of Energy and can be found in Haver's WEEKLY & DAILY databases.
Crude oil costs slipped last week but an upward trend has been behind the rise in gasoline prices. The price for a barrel of light sweet crude (WTI) again fell slightly last week to $83.04 but for the month averaged $84.22 versus $81.01 during March. Prices remain up by two-and-one half times the 2008 low.
A firming of demand has helped energy prices move higher. Weekly gasoline usage was up 1.1% last week versus one year ago and that compares with a 3.0% decline in early-February. The demand for residual fuel oil jumped 10.5% but distillate demand fell 4.1% y/y. Inventories of crude oil and petroleum products rose slightly last month but were down slightly from one year ago. That contrasts with a strong inventory accumulation into September of last year.
U.S. natural gas prices were steady last week at $4.00 per mmbtu (+15.8% y/y). Prices reached a high of $6.50 early in January. Nevertheless, prices remained nearly double the September low.
The energy price data can be found in Haver's WEEKLY database while the daily figures are in DAILY. The gasoline demand figures are in OILWKLY.
| Weekly Prices | 04/26/10 | 04/19/10 | 04/12/10 | Y/Y | 2009 | 2008 | 2007 |
|---|---|---|---|---|---|---|---|
| Retail Regular Gasoline ($ per Gallon, Regular) | 2.85 | 2.86 | 2.86 | 39.0% | 2.35 | 3.25 | 2.80 |
| Light Sweet Crude Oil, WTI ($ per bbl.) | 83.04 | 84.60 | 85.97 | 73.6% | 61.39 | 100.16 | 72.25 |
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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