Global| Dec 09 2014U.S. Gasoline Price Decline Accelerates, Sparking Demand
by:Tom Moeller
|in:Economy in Brief
Summary
The price for a gallon of regular gasoline slumped last week to an average $2.68 (-18.0% y/y) versus $2.78 during the prior week. The 3.6% weekly decline was the quickest since prices hit their peak in 2011. Prices remained down [...]
The price for a gallon of regular gasoline slumped last week to an average $2.68 (-18.0% y/y) versus $2.78 during the prior week. The 3.6% weekly decline was the quickest since prices hit their peak in 2011. Prices remained down versus an interim peak of $3.65 reached this past June. Haver Analytics constructs factors adjusting for the seasonal variation in pump prices. The seasonally adjusted price slipped to $2.92 per gallon.
WTI crude oil prices slumped to an average $67.20 last week (-30.2% y/y) from $72.36 during the prior period. Yesterday prices were down further to $63.05. The seasonally adjusted price generated by Haver declined to $69.36 per barrel last week. Brent crude oil prices fell to $70.07 last week (-37.5% y/y) and were $65.87 yesterday.
Natural gas prices declined last week to $3.65 per mmbtu (-7.3% y/y) and fell further to $3.49 yesterday.
The demand for all petroleum products declined 0.6% y/y in the week ended November 28 but gasoline demand improved 3.2% y/y as prices fell. Inventories of crude oil and petroleum products increased 1.4% y/y but gasoline inventories declined 1.8% y/y.
The energy price data are reported by the U.S. Department of Energy and can be found in Haver's WEEKLY database. The daily figures are in DAILY and the petroleum demand and inventory figures are in OILWKLY.
| Weekly Energy Prices | 12/08/14 | 12/01/14 | 11/24/14 | Y/Y% | 2013 | 2012 | 2011 |
|---|---|---|---|---|---|---|---|
| Retail Gasoline ($ per Gallon, Regular) | 2.68 | 2.78 | 2.82 | -18.0 | 3.51 | 3.62 | 3.52 |
| Light Sweet Crude Oil, WTI ($ per bbl., WSJ) | 67.20 | 72.36 | 75.38 | -30.2 | 97.95 | 94.20 | 95.14 |
| Natural Gas ($/mmbtu, LA, WSJ) | 3.65 | 4.17 | 4.33 | -7.3 | 3.73 | 2.75 | 3.99 |
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.
