U.S. Energy Prices Continue to Strengthen
by:Tom Moeller
|in:Economy in Brief
Summary
- Gasoline prices edge higher.
- Crude oil prices remain on upward trend.
- Natural gas prices continue to rise.
Retail gasoline prices rose last week to an average $3.96 per gallon (-2.2% y/y) for all grades from $3.94 the week before. It was the highest price since the third week of October. Prices have ranged between $3.20 and $5.11 for the last year. The retail price for on-highway diesel fuel strengthened to $4.25 per gallon (-16.5% y/y) last week, up from 4.13 the previous week. Prices have ranged this past year between $3.79 per gallon and $5.81 per gallon.
The price of West Texas Intermediate crude oil averaged $83.06 per barrel (-12.2% y/y) in the week ended August 11 versus $81.39 per barrel in the prior week. The latest price was the highest since the third week of November, up from the late-June low of $69.37. It remained below the high of $120.46 in the week of June 10, 2022. On Monday, the price was $82.51 per barrel. Brent crude prices rose to $87.83 per barrel last week (-16.1% y/y) from $85.63. The recent low for Brent was $73.89 in the week of June 2, and the recent high was $127.40 in the week of June 10, 2022. Yesterday’s price was $87.40 per barrel.
Natural gas prices averaged $2.76/mmbtu (-66.1% y/y) in the week of August 11 versus $2.49 in the prior week. It was the highest price since the last week of January. The price has ranged between a low of $1.93 in the first week of June to $9.17 in the first week of September 2022. Yesterday, the price was $2.74/mmbtu.
In the four weeks ended August 4, gasoline demand rose 1.4% from a year earlier after increasing 3.0% y/y in the prior four-week period. Demand for all petroleum products increased 2.9% y/y versus 1.4% y/y in the prior week. Crude oil input to refineries rose 2.1% in the latest four weeks from a year ago.
Gasoline inventories fell 1.8% y/y in the August 4 week after a 2.8% y/y decline in the prior week and residual fuel oil inventories fell 1.2% y/y after a 2.4% y/y fall in the prior week. Crude oil inventories including the Strategic Petroleum Reserve fell 11.5% from a year ago after a 12.3% y/y decrease in the prior week.
Measured in days’ supply, gasoline inventories in the week of August 4 were 24.1 days, down from 24.8 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 26.9 days, up from 26.6 days in the prior week. 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 database.
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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