U.S. Energy Prices Strengthen in Latest Week
by:Tom Moeller
|in:Economy in Brief
Summary
- Gasoline prices jump.
- Crude oil costs move sharply higher.
- Natural gas prices surge.
Retail gasoline prices for all grades increased to $3.71 per gallon (0.2% y/y) in the week ended April 8 from $3.64 in the prior week. These compare to a low of $3.18 in the middle of January. The recent high stands at $4.00 per gallon in the third week of September, and the all-time high was $5.11 in the week ended June 13, 2022. Retail prices for on-highway diesel fuel moved up to an average $4.06 per gallon (-0.9% y/y) last week from $4.00 in the prior week. A recent low of $3.77 per gallon occurred in the week ended July 3, 2023.
The average price of West Texas Intermediate crude oil strengthened to $85.88 per barrel (6.6% y/y) in the week ended April 5 versus an average $82.34 in the prior week. It remained near the highest price since late-October and stood well above its low of $74.31 per barrel in the week of June 30, 2023. The price remained below a high of $91.45 in the week of September 29, 2023. The all-time high was seen in the week of July 4, 2008 at $142.46 per barrel. Yesterday, the price of West Texas Intermediate crude oil was $86.43 per barrel. The price of European Brent crude oil increased to $89.34 per barrel (7.3% y/y) in the week ended April 5 compared to $86.15. The price of Brent has recently ranged from a low of $74.31 in the week ended June 30, 2023 to a high of $121.57 in the week ended June 10, 2022. Yesterday, the price was $90.07 per barrel.
Natural gas prices jumped to an average of $1.70/mmbtu (-20.6% y/y) in the week ended April 6 from $1.48/mmbtu in the prior week. These compare to a recent high of $3.20 averaged in the week of October 13, 2023. Yesterday, the natural gas price was $1.73/mmbtu.
Gasoline demand eased 0.5% y/y in the four weeks ended March 29 after rising 0.9% y/y in the four weeks ended March 22. Demand for all petroleum products rose 1.4% y/y, after a 2.2% y/y rise in the prior four-week period. Crude oil input to refineries rose 1.7% y/y in the four weeks ended March 29 after rising 1.8% y/y in the previous four week period.
Gasoline inventories rose 2.4% y/y in the week of March 29, the same as during the prior week. Inventories of residual fuel oil increased 1.0% y/y in the week of March 29 after declining 1.1% y/y in the previous week. Crude oil inventories, including the Strategic Petroleum Reserve, decreased 3.1% y/y in the week of March 29 after a 4.0% y/y fall in the prior week.
Measured in days’ supply, gasoline inventories were 25.5 days in the week of March 29 after 26.1 days in the prior week. The recent low was 23.4 days in the week of June 30, 2023. Crude oil inventories held fairly steady at 28.5 days of supply in the week of March 22, down from 29.0 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 & 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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