Global| Nov 03 2020U.S. Natural Gas Prices Continue to Rise; Oil Down Sharply; Gasoline Little Changed
by:Sandy Batten
|in:Economy in Brief
Summary
• Natural gas prices rose further as seasonal demand increased and supply tightened. • Energy product demand declined while inventories rose. Natural gas prices posted another marked weekly increase in the week ended October 30, [...]
• Natural gas prices rose further as seasonal demand increased and supply tightened.
• Energy product demand declined while inventories rose.
Natural gas prices posted another marked weekly increase in the week ended October 30, rising 12.8% w/w (+17.9% y/y) to $3.09/mmbtu following a 26.3% w/w jump to $2.74/mmbtu in the previous week. This was the fourth consecutive weekly increase. Over this period, the price has risen 87% to its highest level since early March 2019.
The price of West Texas Intermediate crude oil slumped 7.6% w/w (-32.3% y/y) to $37.42 per barrel in the week ended October 30 from $40.49 per barrel in the previous week. Yesterday, the price was $36.81 per barrel. The price of Brent crude oil declined 7.0% (-35.3% y/y) to average $39.35 per barrel versus $42.29 in the previous week. The price was $39.16 per barrel yesterday.
Regular gasoline prices slipped to $2.11 per gallon (-18.9% y/y) in the week ended November 2 from $2.14 in the prior week. Haver Analytics adjusts the gasoline price series for usual seasonal variation. The seasonally adjusted price edged down 0.9% w/w to $2.12 per gallon from $2.14 per gallon. The reformulated RBOB Regular Gasoline Spot Price fell to $1.21 per gallon (-43.4% y/y).
In the four weeks ended October 23, gasoline demand declined 10.2% y/y. Total petroleum product demand fell 11.3% y/y. Crude oil input to refineries weakened 14.5% y/y in the past four weeks. Gasoline inventories were up 2.8% from a year ago, and inventories of all petroleum products rose 6.2% y/y.
These data are reported by the U.S. Department of Energy. The price data can be found in Haver's WEEKLY and DAILY databases. Greater detail on prices, as well as the demand, production and inventory data, along with regional breakdowns, are in OILWKLY.
| Weekly Energy Prices | 11/02/20 | 10/26/20 | 10/19/20 | Y/Y % | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|
| Retail Gasoline ($ per Gallon Regular, Monday Price, End of Period) | 2.11 | 2.14 | 2.15 | -18.9 | 2.57 | 2.27 | 2.47 |
| Light Sweet Crude Oil, WTI ($ per bbl, Previous Week's Average) | 37.42 | 40.49 | 40.39 | -32.3 | 56.91 | 64.95 | 50.87 |
| Natural Gas ($/mmbtu, LA, Previous Week's Average) | 3.09 | 2.74 | 2.17 | 17.9 | 2.57 | 3.18 | 2.99 |
Sandy Batten
AuthorMore in Author Profile »Sandy Batten has more than 30 years of experience analyzing industrial economies and financial markets and a wide range of experience across the financial services sector, government, and academia. Before joining Haver Analytics, Sandy was a Vice President and Senior Economist at Citibank; Senior Credit Market Analyst at CDC Investment Management, Managing Director at Bear Stearns, and Executive Director at JPMorgan. In 2008, Sandy was named the most accurate US forecaster by the National Association for Business Economics. He is a member of the New York Forecasters Club, NABE, and the American Economic Association. Prior to his time in the financial services sector, Sandy was a Research Officer at the Federal Reserve Bank of St. Louis, Senior Staff Economist on the President’s Council of Economic Advisors, Deputy Assistant Secretary for Economic Policy at the US Treasury, and Economist at the International Monetary Fund. Sandy has taught economics at St. Louis University, Denison University, and Muskingun College. He has published numerous peer-reviewed articles in a wide range of academic publications. He has a B.A. in economics from the University of Richmond and a M.A. and Ph.D. in economics from The Ohio State University.
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