EIA Gasoline and Diesel Retail Prices Update, December 5, 2017

Analysis by Dr. Nancy Yamaguchi

 

The Energy Information Administration (EIA) released its weekly data on diesel and gasoline retail prices for the week ended December 4, 2017. At the national level, gasoline prices dropped by 3.3 cents per gallon, while diesel prices eased by a modest 0.4 cents per gallon. Gasoline prices declined in all PADDs. Diesel prices declined in all PADDs except for the Gulf Coast PADD 3.

WTI prices declined during the week ended December 1, despite a successful OPEC meeting in Vienna on November 30. The market appeared already to have factored in an extension of the OPEC production cut agreement, so the post-meeting buying was muted. WTI crude prices currently are holding above $57/b.

During the week ended November 24, apparent demand for gasoline and diesel dropped off sharply. The prior week had shown a significant upsurge. Gasoline product supplied declined by a whopping 871 kbpd, and distillate product supplied fell by 175 kbpd. The EIA reported that both gasoline and diesel stockpiles grew during the week ended November 24, with 3.627 mmbbls flowing into gasoline inventories and 2.747 mmbbls added to distillate inventories. Crude stocks were drawn down by 3.429 mmbbls.

US crude production continued to climb, with 24 kbpd added to weekly supply. US crude production averaged 9682 kbpd during the week ended November 24.

For the current week ended December 4, diesel prices decreased by 0.4 cents to arrive at an average price of $2.922/gallon.

PADD 1 retail diesel prices fell by 0.3 cents to $2.904/gallon. Within the PADD, New England prices rose by 1.6 cents to average $2.897/gallon. Central Atlantic diesel prices fell by 1.2 cents, to an average of $3.062/gallon. This submarket has had diesel prices above $3/gallon for the past four weeks. Lower Atlantic prices were unchanged at $2.794/gallon. PADD 1 prices were 40.5 cents/gallon above their prices for the same week last year.

In the Midwest PADD 2 market, retail diesel prices declined by 0.7 cents to average $2.877/gallon. Prices were 44.6 cents/gallon above their level for the same week last year.

In the Gulf Coast PADD 3, retail diesel prices edged up by 0.1 cents to average $2.713/gallon. This price was 35.2 cents higher than in the previous year.

In the Rocky Mountains PADD 4 market, retail diesel prices decreased by 0.7 cents to $3.019/gallon. During the past three weeks, PADD 4 has been in company with PADD 5 in having diesel prices above $3/gallon. This price was 56.2 cents higher than in the prior year.

In the West Coast PADD 5 market, retail prices fell by 0.7 cents to average $3.373/gallon. This price was 60.3 cents above its level from last year. Prices excluding California fell by 0.7 cents to average $3.106/gallon, which was 42.7 cents above the retail price for the same week last year. California diesel prices dropped by 1.2 cents to an average price of $3.585/gallon. This price was 74.2 cents higher than last year’s price. PADD 5 had been the only PADD to have diesel prices above $3 per gallon, but PADD 4 prices also topped the $3/gallon mark over the past three weeks. California prices jumped following the November 1 tax hike.

 

U.S. retail gasoline prices dropped by 3.3 cents for the week ended December 4, to arrive at an average price of $2.50/gallon.

For the current week ended December 4, East Coast PADD 1 retail prices for gasoline fell by 1.7 cents to $2.491/gallon. The average price was 26.0 cents higher than last year’s price. Prices decreased by 0.9 cents in New England to $2.575/gallon. Central Atlantic market prices declined by 1.6 cents to $2.616/gallon. Prices in the Lower Atlantic market dropped by 1.9 cents, to an average price of $2.373/gallon. This was 26.0 cents higher than last year’s average price for the same week.

In the Midwest PADD 2 market, retail gasoline prices dropped significantly by 6.5 cents to settle at an average price of $2.357/gallon. Gasoline pump prices were 25.0 cents higher than they were one year ago.

In the Gulf Coast PADD 3 market, gasoline prices fell by 1.2 cents to average $2.250/gallon. PADD 3 has the lowest average price among the five PADDs. Prices for the week were 27.1 cents higher than for the same week in 2016.

In the Rocky Mountains PADD 4 market, gasoline pump prices eased by 0.4 cents to average $2.534/gallon. PADD 4 prices were 41.4 cents higher than at the same time in 2016.

In the West Coast PADD 5 market, retail gasoline prices dropped by 2.9 cents to average $3.006/gallon. This was 43.4 cents higher than at the same time a year ago. PADD 5 typically has the highest gasoline prices among the five PADDs, and its retail gasoline prices have been back above $3/gallon for the past four weeks. Excluding California, West Coast prices decreased by 1.1 cents to an average of $2.739/gallon. This was 35.9 cents higher than at the same time in 2016. In California, prices dropped by 4.0 cents, arriving at an average pump price of $3.16/gallon. California prices were 47.8 cents per gallon above their levels from last year.