Global| Oct 20 2009Weekly Gasoline Prices Increase With Stronger Crude Oil Prices
by:Tom Moeller
|in:Economy in Brief
Summary
The pump price for regular gasoline increased last week to $2.57 per gallon and the gain reversed most of the decline since early last month. Moreover, prices remain up from the December low of $1.61. In addition, prices recently [...]
The pump price for regular gasoline increased last week to $2.57 per gallon and the gain reversed most of the decline since early last month. Moreover, prices remain up from the December low of $1.61. In addition, prices recently moved even higher and the wholesale gasoline price broached the $2.00 level for the first time since early-August. This level is nearly the highest in one year. The figures are reported by the U.S. Department of Energy and can be found in Haver's WEEKLY & DAILY databases.
The crude oil market certainly has firmed and light sweet crude prices (WTI) rose to $75.74 per barrel last week, up from the December low of $32.37. Yesterday, the spot market price for light sweet crude oil rose even further to $79.61 per barrel.
Behind the increase in energy prices is an increase in the demand for gasoline. Last week, it posted a 4.0% rise versus one year ago. The gain was the strongest since the fall of 2006. Demand for residual fuel oil also increased 12.6% y/y while distillate demand halved its recent decline to 11.3% y/y. Finally, oil remains plentiful as evidenced by a 13.0% y/y rise in inventories of crude oil & petroleum products. The gain in inventories of gasoline has eased sharply, however, to 7.9% versus last year. The figures on crude oil production and inventories are available in Haver's OILWKLY database.
Natural gas prices increased again last week, ahead of the winter heating season, to an average of $3.63 per mmbtu (-45.8% y/y) but they remained down by three-quarters from the high reached in early-July of last year of $13.19/mmbtu. Yesterday prices increased further to $4.00/mmbtu.
| Weekly Prices | 10/19/09 | 10/12/09 | Y/Y | 2008 | 2007 | 2006 |
|---|---|---|---|---|---|---|
| Retail Regular Gasoline ($ per Gallon, Regular) | 2.57 | 2.49 | -11.7% | 3.25 | 2.80 | 2.57 |
| Light Sweet Crude Oil, WTI ($ per bbl.) | 75.74 | 70.86 | 0.7% | 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.
More Economy in Brief
