U.S. Energy Prices Continue to Decline
by:Tom Moeller
|in:Economy in Brief
Summary
- Gasoline prices have fallen for three months.
- Crude oil costs ease.
- Natural gas prices decline sharply.
Retail gasoline prices declined last week to an average $3.18 per gallon (-1.8% y/y) for all grades from $3.26 in the prior week. It was the lowest price since June 2021. The price reached a high of $4.00 in the third week of September. The retail price for on-highway diesel fuel fell to $3.89 per gallon (-15.3% y/y) last week from $3.99 in the prior week. The latest price remained up from a low of $3.77 in early-July.
The price of West Texas Intermediate crude oil fell to $70.34 per barrel (-6.5% y/y) in the week ended December 15 after declining to $70.85 in the prior week. These remained below the recent high of $91.45 in the last week of September but were above the late-June low of $69.37. Prices remain well below the high of $120.46 in the week of June 10, 2022. Yesterday, the price was $72.47 per barrel. Brent crude prices slipped to $75.58 per barrel (-6.5% y/y) last week compared to $75.98 in the prior week. Prices remained below the late-September high of $95.61. The high for Brent was $127.40 in the week of June 10, 2022. Yesterday, the price was $78.89 per barrel.
Natural gas prices declined to an average $2.38/mmbtu (-64.9% y/y) in the week of December 15, after falling to $2.62 in the previous week. Prices reached a high of $9.56/mmbtu in the last week of August 2022 and a low of $1.93 in the first week of June. Yesterday, the price was $2.59/mmbtu.
In the four weeks ended December 8, gasoline demand rose 2.3% from a year earlier after rising 1.1% y/y in the prior four-week period. Demand for all petroleum products edged 0.6% y/y higher after declining 2.1% y/y in the previous four weeks. Crude oil input to refineries fell 2.9% y/y in the latest four weeks, after declining 4.0% y/y in the prior four week period.
Gasoline inventories rose 0.2% y/y in the week of December 8, 2023 after rising 2.1% y/y in the previous week. Residual fuel oil inventories fell 7.1% y/y after declining 10.0% y/y in the previous week. Crude oil inventories, including the Strategic Petroleum Reserve, fell 1.7% y/y following a 0.5% y/y decline in the previous week.
Measured in days’ supply, gasoline inventories in the week of December 8 were 26.3 days versus 26.2 days in the prior week. The recent high was 29.7 days in the third week of January and the recent low was 23.4 days in the last week of June. The supply of crude oil was 27.6 days. The recent high was 31.9 days at the beginning of March.
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 & 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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