U.S. Energy Prices Remain Mixed in Latest Week
by:Tom Moeller
|in:Economy in Brief
Summary
- Gasoline prices fall sharply to four-year low.
- Crude oil prices reverse prior week’s decline.
- Natural gas prices move to highest level since February.
- Gasoline demand falls sharply y/y.
Retail gasoline prices for all grades declined to an average $3.07 per gallon (-1.9% y/y) in the week ended December 8 after falling to $3.12 per gallon during the prior week. It was the lowest price since May 2021. The recent high was $3.79 in the week ending April 22, 2024. Their all-time high of $5.11 occurred in the week ending June 13, 2022. Haver Analytics seasonally adjusts the retail price of regular grade gasoline. That price rose to $3.18 per gallon last week after falling to $3.17 in the previous week. Diesel fuel prices declined to $3.67 per gallon last week (+6.0% y/y) after falling to $3.76 per gallon in the prior week.
The price of West Texas Intermediate crude oil rose to an average $59.33 per barrel (-13.3% y/y) in the week ended December 5, after falling to $58.50 per barrel in the prior week from $59.46. Prices remained under their recent high of $74.17 during the third week of June. The cost of crude oil peaked at $120.46 in the week of June 10, 2022. Yesterday, the price was $58.88 per barrel. The price of European Brent crude fell to $63.98 per barrel (-13.5% y/y) last week, after rising to $64.38 in the prior week from $63.64. Prices remained below a recent high of $95.61 in the week of September 29, 2023 and below a peak of $127.40 in June 2022. Yesterday, the price was $63.30 per barrel.
Natural gas prices increased to an average $4.97/mmbtu (71.4% y/y) in the week ended December 5 after rising to $4.36/mmbtu in the prior week. The increase left prices at the highest level since the third week of February and well above the low of $1.40/mmbtu in the week of March 15, 2024. Yesterday, the price was $5.02/mmbtu.
Gasoline demand declined 1.2% y/y in the four weeks ending November 28, after edging 0.1% higher y/y in the prior four weeks. Demand for all petroleum products fell 0.5% y/y after holding steady y/y in the previous four-week period. Crude oil input to refineries declined 0.6% y/y in the four weeks ending November 28, after falling 2.2% y/y in the prior four weeks.
Gasoline inventories eased 0.1% y/y in the week ending November 28 following a 1.1% y/y decline in the prior week. Residual fuel oil inventories slipped 0.3% y/y in the November 28 week after falling 1.3% y/y in the prior week. Working higher, crude oil inventories rose 2.9% y/y in the week of November 28 after increasing 2.4% y/y in the previous week.
Measured in days’ supply, gasoline inventories rose to 24.8 days in the week ended November 28, a six-week high, from 23.9 days in the prior week. The recent low was 22.9 days in the week of November 7, 2024. The supply of crude oil slipped w/w to 26.1 days in the week of November 28 from 26.7 days in the prior week. The supply remained below a recent high of 31.9 days in the week of March 3, 2023.
These data are reported by the Energy Information Administration of the U.S. Department of Energy. The price and supply/demand data can be found in Haver’s WEEKLY and USENERGY databases.
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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