U.S. Energy Prices Decline in Latest Week
by:Tom Moeller
|in:Economy in Brief
Summary
- Gasoline prices fall sharply.
- Crude oil prices weaken.
- Natural gas costs decline significantly.
Retail gasoline prices for all grades declined to an average $3.21 per gallon (-7.5% y/y) last week after falling to $3.26 in the week ending February 24. Prices remained up from a low of $3.13 in the week of December 30. The recent high was $3.79 in the week ending April 22, 2024. Its all-time high of $5.11 occurred in the week ending June 13, 2022. The retail price for on-highway diesel fuel fell to $3.64 per gallon (-9.6% y/y) in the February 24 week from $3.70 in the prior week. The latest diesel price stood well below a high of $4.63 in the week ending September 18, 2023 and a peak of $5.81 in the week ending June 20, 2022.
The price of West Texas Intermediate crude oil weakened to $69.67 per barrel (-12.0% y/y) in the week ended February 28, after falling to $71.77 per barrel in the prior week. These prices remained above a low of $69.37 in the week of June 30, 2023 but below a high of $91.45 in the week of September 29, 2023. The cost of crude oil peaked at $120.46 in the week of June 10, 2022. Yesterday, the price was $68.37 per barrel. The price of European Brent crude oil of $74.25 per barrel (-113.9% y/y) slumped in the week of February 28 from $76.09 in the prior week. Prices remained below a recent high of $95.61 in the week of September 29, 2023 and below a peak of $127.40 in the week of June 10, 2022. Yesterday, the price was $72.85 per barrel.
Natural gas prices plunged to an average $3.89 per mmbtu (+146.2% y/y) in the week ended February 28 from $5.90/mmbtu in the prior week. Prices remained well above a low of $1.40/mmbtu in the week of March 15, 2024 but below their peak of $9.56 in the week of August 26, 2022. Yesterday, the price was $3.80 per mmbtu.
Gasoline demand eased 0.1% y/y in the four weeks ending February 21 following a 0.4% y/y rise in the prior four weeks. Demand for all petroleum products rose 4.2% y/y in the four weeks ending February 21 after a 3.7% y/y rise in the previous four-week period. Crude oil input to refineries rose 5.6% y/y in the four weeks ending February 21 after a 4.4% y/y increase in the prior four weeks.
Gasoline inventories rose 1.7% y/y in the week ending February 21 after a 0.4% y/y rise in the week ending February 14. Residual fuel oil inventories fell 18.0% y/y in the week of February 21, after a 19.9% y/y fall in the prior week. Crude oil inventories rose 2.2% y/y in the week of February 21 after a 3.2% y/y rise in the previous week.
Measured in days’ supply, gasoline inventories held steady at 29.6 days in the week of February 21. The recent low was 22.9 days in the week of November 8. The supply of crude oil fell to 27.8 days in the week of February 21 from 28.2 days in the prior week, up from 24.6 days in the week of January 10 but remained below 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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