U.S. Gasoline & Crude Oil Prices Continue on Downward Path in Latest Week

Retail gasoline prices for all grades declined to $3.31 per gallon (-17.3% y/y) in the week ended September 16 from $3.36 per gallon in the previous week. Prices were below the late-April high of $3.79 per gallon and at the lowest level since the first week of February. They also stood well below 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 declined to $3.53 per gallon (-23.9% y/y) last week compared to $3.56 in the prior week. These prices reached a high of $4.63 per gallon in the third week of September of last year.

The average price of West Texas Intermediate crude oil weakened to $68.26 per barrel (-23.4% y/y) in the week ended September 13 after falling to $69.55 per barrel in the prior week. Prices roughly equaled the lowest level in the last week of May 2021 and were lower than the $91.45 high in the last week of September 2023. They peaked at $142.46 per barrel in the week of July 4, 2008. Yesterday, the price of West Texas Intermediate crude oil was $70.09 per barrel. The price of European Brent crude oil fell to $72.10 per barrel (-23.2% y/y) in the week ended September 13 compared to $75.25 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 $73.96 per barrel.

Natural gas prices improved to an average $2.13/mmbtu (-21.4% y/y) in the week ended September 13 compared to $2.04 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 $2.23/mmbtu.

Gasoline demand increased 0.9% y/y in the four weeks ended September 6 after improving by the same amount in the four weeks ended August 30. This compares to a high of 4.2% y/y growth at the end of July. Demand for all petroleum products weakened 2.2% y/y in the last four weeks after falling 1.6% y/y in the previous period. Crude oil input to refineries rose 0.6% y/y in the four weeks ended September 6 after a 0.3% y/y increase during the previous four-week period.

Gasoline inventories rose 0.6% y/y in the week of September 6 after rising 2.1% y/y in the prior week. Inventories of residual fuel oil fell 6.1% y/y after declining 2.3% y/y in the previous week. Crude oil inventories, including the Strategic Petroleum Reserve, rose 3.6% y/y in the week of September 6 after increasing 4.0% in the prior week.

Measured in days’ supply, gasoline inventories were 24.7 days in the week ended September 6 following 24.0 days one week earlier. The recent low was 23.4 days in the week of June 30, 2023. Crude oil inventories eased to 24.9 days in the week of September 4 from 25.0 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 and USENERGY databases.