Global| May 19 2020U.S. Petroleum Prices Strengthen
by:Tom Moeller
|in:Economy in Brief
Summary
• Gasoline prices continue to increase. • Crude oil prices rise to highest level since early-March. • Natural gas prices fall to six-week low. Retail gasoline prices increased to $1.88 per gallon (-34.2% y/y) in the week ended May 18 [...]
• Gasoline prices continue to increase.
• Crude oil prices rise to highest level since early-March.
• Natural gas prices fall to six-week low.
Retail gasoline prices increased to $1.88 per gallon (-34.2% y/y) in the week ended May 18 from $1.85 per gallon in the previous week. It was the third straight week of increase. Haver Analytics adjusts the gasoline price series for regular seasonal variation. The seasonally adjusted price rose to $1.75 per gallon, the highest in five weeks.
The spot price of West Texas Intermediate crude oil rose to $26.41 per barrel (-37.5% y/y) in the week ended May 15. Yesterday, the price strengthened to $31.82 per barrel. This remained below the weekly high of $75.11 in early-October 2018. The price of Brent crude oil rose to $28.18 per barrel from $23.57. Yesterday, the price was $33.30.
The average price of natural gas declined to $1.63/mmbtu (-39.0% y/y) in the week ended May 15 after rising to $1.84/mmbtu the previous week. The price of natural gas remained down from $4.67/mmbtu late in November 2018. Yesterday, the price fell to $1.77.
In the four weeks ending May 8, gasoline demand weakened by one-third y/y, while total petroleum product demand fell 22.8% y/y. Crude oil input to refineries declined 23.5% y/y in the past four weeks. Gasoline inventories rose 12.4% y/y and inventories of all petroleum products increased 6.5% y/y.
These data are reported by the U.S. Department of Energy. The price data can be found in Haver's WEEKLY and DAILY databases. Greater detail on prices, as well as the demand, production and inventory data, along with regional breakdowns, are in OILWKLY.
| Weekly Energy Prices | 05/18/20 | 05/11/20 | 05/04/20 | Y/Y % | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|
| Retail Gasoline ($ per Gallon Regular, Monday Price, End of Period) | 1.88 | 1.85 | 1.79 | -34.2 | 2.57 | 2.27 | 2.47 |
| Light Sweet Crude Oil, WTI ($ per bbl, Previous Week's Average) | 26.41 | 23.46 | 15.64 | -37.5 | 56.91 | 64.95 | 50.87 |
| Natural Gas ($/mmbtu, LA, Previous Week's Average) | 1.63 | 1.84 | 1.71 | -39.0 | 2.57 | 3.18 | 2.99 |
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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