U.S. Gasoline Prices Decline in Latest Week; Crude Oil Prices Rise

Retail gasoline prices for all grades fell to $3.50 per gallon (-12.1% y/y) in the week ended August 19 from $3.53 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 second week of March. They also stood below the all-time high of $5.11 in the week ended June 13, 2022. Prices have increased, however, and are higher than the low of $3.18 per gallon in the third week of December. Retail prices for on-highway diesel fuel eased to $3.69 per gallon (-16.0% y/y) last week compared to $3.70 in the prior week. The price was $3.87 five weeks ago and $4.11 in early-February.

The average price of West Texas Intermediate crude oil rose to $78.61 per barrel (-2.9% y/y) in the week ended August 16 from $75.75 per barrel in the prior week. Prices remained 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 $74.37 per barrel. The price of European Brent crude oil rose to $82.47 per barrel (-4.0% y/y) in the week ended August 16 compared to $78.84 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 $81.09 per barrel.

Natural gas prices averaged $2.13/mmbtu (-17.8% y/y) in the week ended August 16 compared to $1.88 in the prior week. They remained above the 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 $2.12/mmbtu.

Gasoline demand increased 2.2% y/y in the four weeks ended August 9 after improving 1.5% y/y in the four weeks ended August 2. Demand for all petroleum products weakened 1.7% y/y in the last four weeks after falling 2.0% y/y in the previous period. Crude oil input to refineries declined 1.4% y/y in the four weeks ended August 9 after a 0.4% y/y easing in the previous four-week period.

Gasoline inventories rose 2.8% y/y in the week of August 9 after increasing 4.0% y/y in the prior week. Inventories of residual fuel oil fell 1.5% y/y after declining 7.3% y/y in the previous week. Crude oil inventories, including the Strategic Petroleum Reserve, rose 2.4% y/y in the week of August 9 following a 1.5% y/y rise in the prior week.

Measured in days’ supply, gasoline inventories were 24.2 days in the week ended August 9 following 24.7 days one week earlier. The recent low was 23.4 days in the week of June 30, 2023. Crude oil inventories edged higher to 26.3 days in the week of August 9 from 26.1 days. 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.