The Energy Information Administration (EIA) released its weekly data on diesel and gasoline retail prices for the week ended August 28, 2017. At the national level, prices for both fuels rose, although gasoline prices rose significantly more than diesel prices. Retail diesel prices increased by 0.9 cents per gallon, while gasoline prices rose by 3.9 cents per gallon.
Retail prices for refined fuels tend to track crude oil prices, but there may be a disconnect in retail price data this week and in the coming week because of the severe impacts of Hurricane Harvey, which has cut into crude runs and caused a bump-up in refined product prices. The data covered here includes the days leading up to Hurricane Harvey making landfall in Texas on Friday, plus the weekend of severe stormy weather. Heavy rains and catastrophic flooding continue to assault the region. Gasoline futures prices rose for five consecutive days until easing today.
The storm has moved back over the Gulf of Mexico, but it is expected to return with a fresh batch of moisture and make landfall near the Texas-Louisiana border. This threatens energy infrastructure in the Houston area and along the Louisiana coast. In the Corpus Christi area, Valero and Citgo are reportedly preparing to restart their refineries.
For the current week ended August 28, diesel prices rose by 0.9 cents to arrive at an average price of $2.605/gallon. Before last week’s price decline, diesel prices had risen for seven consecutive weeks. Between the week ended June 26 and the week ended August 14, diesel prices rose by 13.3 cents per gallon.
U.S. retail gasoline prices increased by 3.9 cents for the week ended August 28 to an average price of $2.399/gallon. Prices rose in all five PADDs. During the most recent week ended August 28, prices were 16.2 cents higher than for the same week in 2016. Last week showed a price decline—the first in four weeks. Prior to that, retail gasoline prices rose by 10.6 cents per gallon between the week ended July 17 and the week ended August 14.
West Texas Intermediate (WTI) crude opened at $46.86 per barrel (/b) this session, a drop of $1.03 from yesterday’s opening. Currently this morning, WTI prices are $46.64/b, down by 22 cents since today’s opening. The daily price range has been $46.39/b – $46.96/b. Geopolitical tensions are on the rise again following North Korea’s missile launch, which flew over Japanese airspace, reportedly between the main island of Honshu and the northerly island of Hokkaido.
