U.S. Energy Prices Decline in Latest Week

Retail gasoline prices for all grades weakened to $3.56 per gallon (-9.6% y/y) in the week ended August 5 from $3.60 per gallon in the previous week. Prices remain below the late-April high of $3.79 per gallon and the all-time high of $5.11 in the week ended June 13, 2022. Prices are increased, however, versus the low of $3.18 per gallon in the third week of December. Retail prices for on-highway diesel fuel eased to $3.76 per gallon (-11.4% y/y) last week compared to $3.77 in the prior week. These prices stand below a recent high of $4.63 per gallon in the third week of September 2023.

The average price of West Texas Intermediate crude oil declined to $76.24 per barrel (-6.3% y/y) in the week ended August 2 from $78.79 per barrel in the prior week. Prices recently were as high as $91.45 in the last week of September 2023 and peaked at $142.46 per barrel in the week of July 4, 2008. Yesterday, the price of West Texas Intermediate crude oil was $72.94 per barrel. The price of European Brent crude oil fell to $80.26 per barrel (-6.3% y/y) in the week ended August 2 compared to $82.52 in the prior week. The price of Brent has recently ranged from a low of $73.55 in the week ended June 30, 2023 to a high of $127.40 in the week ended June 10, 2022. Yesterday, the price was $77.51 per barrel.

Natural gas prices averaged $1.90/mmbtu (-23.7% y/y) in the week ended August 2 compared to $2.06 in the prior week. Prices recently touched a high of $2.73 /mmbtu in the second week of June and they remained above their low of $1.40/mmbtu in the second week of March. Prices reached a high of $9.56/mmbtu averaged in the last week of August 2022. Yesterday, the price of natural gas was $1.90/mmbtu.

Gasoline demand increased 4.2% y/y in the four weeks ended July 26 after improving 2.5% y/y in the four weeks ended July 19. Demand for all petroleum products moved 1.4% higher y/y in the last four weeks after rising 0.4% y/y in the previous period. Crude oil input to refineries rose 0.5% y/y in the four weeks ended July 26 after a 2.3% y/y rise during the previous four-week period.

Gasoline inventories rose 2.1% y/y in the week of July 26 after rising 4.5% y/y in the prior week. Inventories of residual fuel oil fell 6.0% y/y after declining 5.6% y/y in the previous week. Crude oil inventories, including the Strategic Petroleum Reserve, rose 2.7% y/y in the week of July 26 following a 0.9% y/y rise in the prior week.

Measured in days’ supply, gasoline inventories were little changed w/w at 24.3 days in the week ended July 26 following the prior week’s decline to 24.5 days from 25.5 days one week earlier. The recent low was 23.4 days in the week of June 30, 2023. Crude oil inventories were unchanged at 26.0 days in the week of July 26 versus 26.1 days in the prior week. These compare to a recent high of 31.9 days in the week of March 3, 2023 and a low of 25.0 days in the week of September 1, 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.