Global| Oct 27 2009Weekly Gasoline Prices Climb Toward 12-Month High
by:Tom Moeller
|in:Economy in Brief
Summary
Gasoline prices rose to nearly their highest level in one year. The pump price for regular gasoline increased last week to $2.67 per gallon which was roughly the highest level since October of last year. Moreover, prices remain up [...]
Gasoline prices rose to nearly their highest level in one year. The pump price for regular gasoline increased last week to $2.67 per gallon which was roughly the highest level since October of last year. Moreover, prices remain up from the December low of $1.61. This week prices rose even further and the wholesale gasoline price moved to $2.07 from an average $2.05 last week. The figures are reported by the U.S. Department of Energy and can be found in Haver's WEEKLY & DAILY databases.
Higher crude oil prices are behind the rise in gas prices and light sweet crude (WTI) rose to an average $80.35 per barrel last week, up from the December low of $32.37. Yesterday, the spot market price for light sweet crude oil leveled off and slipped to $78.68 per barrel.
Behind the increase in energy prices is an increase in the demand for gasoline. Last week, it posted a 3.4% rise versus one year ago. The gain was nearly the strongest since the fall of 2006. Demand for residual fuel oil also increased 22.8% y/y while distillate demand halved its recent decline to 11.5% y/y. 
Finally, an earlier abundance of gasoline has eased somewhat. Gasoline inventories were up 5.3% y/y last week which was one-quarter of the gain last month. The gain in crude oil inventories also halved to 8.9% y/y and inventories of residual fuel oil are down 8.5% versus last year.
Natural gas prices also strengthened last week, ahead of the winter heating season, to an average of $4.70 per mmbtu (-30.2% y/y). Though they remained down by two-thirds from the high reached in early-July of last year of $13.19/mmbtu, they are more than double the low reached early last month. Yesterday prices increased further to $4.55/mmbtu.
What is Driving Energy Prices from the Federal Reserve Bank of Dallas is available here.
| Weekly Prices | 10/26/09 | 10/19/09 | Y/Y | 2008 | 2007 | 2006 |
|---|---|---|---|---|---|---|
| Retail Regular Gasoline ($ per Gallon, Regular) | 2.67 | 2.57 | 0.7% | 3.25 | 2.80 | 2.57 |
| Light Sweet Crude Oil, WTI ($ per bbl.) | 80.35 | 75.74 | 17.8% | 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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