U.S. Energy Prices Decline in Latest Week
by:Tom Moeller
|in:Economy in Brief
Summary
- Gasoline prices weaken; crude oil prices decline and natural gas prices fall sharply.
- Demand for gasoline increases moderately.
- Inventories of gasoline fall, but crude oil inventories rise.
Retail gasoline prices for all grades fell to $3.13 per gallon (-3.9% y/y) in the week ended December 2nd from $3.16 per gallon in the prior week. The recent high was $3.79 in the week ended April 22, and its all-time high of $5.11 occurred in the week ended June 11, 2022. The latest measure of on-highway diesel fuel prices was $3.46 per gallon (-13.3% y/y) versus $3.54 per gallon in the prior week. Diesel prices have ranged between $2.37 per gallon in the week ended November 2, 2020 and $5.81 in the week of June 20, 2022.
Crude oil prices eased to an average $68.42 per barrel (-3.4% y/y) in the week ended December 6 and reversed most of the prior week’s increase to $69.61 per barrel. West Texas Intermediate prices have fallen from a high of $91.45 in the week of September 29, 2023. Yesterday, the price was $69.39 per barrel. The price of European Brent crude oil stood at $72.31 per barrel last week (-4.9% y/y) versus $72.26 in the week prior. Yesterday’s price was $74.32 per barrel.
Natural gas prices fell to $2.90 per mmbtu last week (-10.7% y/y) from $3.19 in the prior week. Prices were below a $2.73 high in the second week of June. The price was $2.10 per mmbtu yesterday.
Gasoline demand rose 2.8% y/y in the four weeks ended November 29, after holding steady y/y in the prior four weeks. Demand for all petroleum products increased 4.0% y/y in the four weeks ended November 29 after a 1.0% y/y increase in the prior four weeks. Crude oil input to refineries rose 4.5% y/y in the four-week period ended November 29 after a 5.2% y/y increase in the prior four weeks.
Gasoline inventories fell 4.0% y/y in the week ended November 29 after decreasing 2.7% y/y in the week prior. Inventories of residual fuel oil fell 12.0% in the week of November 29 after declining 11.0% y/y in the prior week. In contrast, crude oil inventories grew 2.3% y/y in the latest week following a 2.2% y/y increase during the prior week.
Measured in days’ supply, gasoline inventories rose to 24.5 days in the week ended November 29 from 24.2 days in the prior week. Crude oil inventories slipped to 25.7 days’ supply in the week of November 29 from 26.2 days in the prior week. These compare to a low of 24.8 days in the week ended September 20, 2024 and a high of 31.9 days in the week of March 3, 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 & USENERGY 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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