This Week in Petroleum Summary May 15th, 2024 per EIA.GOV

This week's full report.

Gasoline fell -3.3¢ for the week, but remains +7.2¢ from year ago level. Consumption did edge up again per this past report.

Inventories were down across the board, except total petroleum + products, with crude down -2.5M barrels; Distillates down 45K; Gasoline down -235K.

Refinery output continues to lag, compared to year ago levels.

For those interested, the exports of Crude, Petroleum Products, Including Gasoline has far outweighed the imports, by this much, since March, 2022.

The current crack spread has dropped from last week's $26.46, to $25.35. Gasoline at $15.97 from last week's $16.43. Distillates slid to $9.39, compared to last week's $10.03.

A drift lower on pump prices is easy to imagine at this point. Things can change rapidly. It does seem to indicate consumption running below year ago levels and the why... is the question in my mind.

5/15/2024, Advance Retail Sales Report for April Data

Advance Monthly Sales for Retail and Food Services, April Report.

Advance estimates of U.S. retail and food services sales for April 2024, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $705.2 billion, virtually unchanged (±0.4 percent)* from the previous month, but up 3.0 percent (±0.5 percent) above April 2023. Total sales for the February 2024 through April 2024 period were up 3.0 percent (±0.5 percent) from the same period a year ago. The February 2024 to March 2024 percent change was revised from up 0.7 percent (±0.5 percent) to up 0.6 percent (±0.1 percent).

Retail trade sales were virtually unchanged (±0.4 percent)* from March 2024, but up 2.7 percent (±0.5 percent) above last year. Nonstore retailers were up 7.5 percent (±1.6 percent) from last year, while food services and drinking places were up 5.5 percent (±2.1 percent) from April 2023.

WOW! The revisions were substantial and long term...

Can't remember such a sea of downward revisions.

The result, when adjusted for inflation...

Whatever the reasons for the downward revisions, the trend line for actual purchases, when adjusted for inflation is slipping downward.

There clearly is a demand drop, but whether due to inflation causing budgets to tighten... who really knows.

It should be noted the following groupings, do seem to be waning on both annual and month to month...

• Furniture and home furniture stores
• Health and personal care stores
• Sporting goods, hobby, musical etc.

For whatever reason, we do seem to be cutting back in some areas.

 

BLS Data Dump. CPI - May 15th, 2024 (part 2)

On to the Real Earnings.

There seems to be a downward trend, across the board, even with downward revisions of previous months data. An increase of 2¢ from February, 2020. It is important to adhere to that timing, as it was before the disruption of the workforce, cue to covid.

It seems that real earnings have slipped from the December/January timeframe.

All the other reports seem to indicate a shift in purchasing choices.

BLS Data Dump. CPI - May 15th, 2024 (part 1)

First up is the BLS Report for CPI...(historical releases)

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3 percent in April on a seasonally adjusted basis, after rising 0.4 percent in March, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 3.4 percent before seasonal adjustment.

The index for shelter rose in April, as did the index for gasoline. Combined, these two indexes contributed over seventy percent of the monthly increase in the index for all items. The energy index rose 1.1 percent over the month. The food index was unchanged in April. The food at home index declined 0.2 percent, while the food away from home index rose 0.3 percent over the month.

Here is the unadjusted CPI for the past 12 months...

My own personal CPI rose 3.1% Y/Y and 0.4% on the month...

Taking a look at the current report card...

Food was mentioned in the report...

Hidden in all those numbers and weightings... food away from home is barely above January, 2021 numbers. That is NOT adjusted for inflation, but in current dollars. I can't help but think the entities making up the food away from home category... are struggling, as the dollars spent does not come close to the inflation rate. 

So the overall inflation does seem to be slowly easing, and next months report "should" indicate a further slowing. 

Let's hope!

PPI MAY 2024 release April 2024 Data

The BLS has released the April, 2024 Producer Price Index Report.  (historical releases)

The Producer Price Index for final demand rose 0.5 percent in April, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices declined 0.1 percent in March and advanced 0.6 percent in February. (See table A.) On an unadjusted basis, the index for final demand moved up 2.2 percent for the 12 months ended in April, the largest increase since rising 2.3 percent for the 12 months ended April 2023.

Nearly three-quarters of the April advance in final demand prices is attributable to a 0.6-percent increase in the index for final demand services. Prices for final demand goods moved up 0.4 percent.

The index for final demand less foods, energy, and trade services moved up 0.4 percent in April after rising 0.2 percent in March. For the 12 months ended in April, prices for final demand less foods, energy, and trade services increased 3.1 percent, the largest advance since climbing 3.4 percent for the 12 months ended April 2023.

PPI Final Demand...

The 2.2% rise on year to year, increased from last month and is the new highest since April, 2023. The rise was tempered by a drop in energy prices, and best of all... food. The latter showing the first decrease in 3 months, after sharp increases. We will wait and see how that is reflected in grocery store prices.

Despite the slight rise year over year, the troubling part is month over month, which reversed last month's pullback. +0.5% v -0.1%.

The where can be found in the detailed report. If the month to month was +0.5%, look for the areas more than that figure, to determine the inflationary pressures.

This Week in Petroleum Summary May 8th, 2024 per EIA.GOV

This week's full report.

Gasoline fell -2.3¢ for the week, but remains +10.3¢ from year ago level. Consumption did edge up this past report.

Inventories were again mixed, with crude down -1.4M barrels; Distillates up +560K; Gasoline up +915K.

Refinery output continues to lag, compared to year ago levels.

For those interested, the exports of Crude, Petroleum Products, Including Gasoline has far outweighed the imports, by this much, since March, 2022.

The current crack spread has dropped from last week's $27.71, to $26.46. Gasoline at $16.43 from last week's $17.92. Distillates roset $10.03, compared to last week's $9.79.

It's hard to imagine any upward drift in gasoline pump prices on a national average basis. Consumption will need to pick up for prices to elevate above current levels. Even with reduction in gasoline production, the days supply is a bit high for early May. 

I am not complaining, but the question is why consumption is lower than last year? Some reasons might be good, but some might also be bad. 

A Foray into the 2024 Presidential Election, Part XV

Oh my!! After all the hoopla of the past week, I am not seeing any major shifts. 

Before starting, I have dropped Texas and Florida from the battleground states, most frequently visited in past elections. 

For Texas, in 2020, Trump generally led in the polls with a poll margin of 1.1%, just before the election. He won with a 5.57% margin. He currently leads in the polls with a 10.1% advantage, compared to same time in 2020... of 2.9%.

Florida polls this time in 2020, had Biden with a 2.2% lead, and a 2.5% lead just before the election. Trump won the state with 3.36% as the margin. Trump currently has a 10.3% lead over Biden.

I hope that answers the why.

Looking at the remaining battleground states for current polling and 2020 polling...

This time in 2020, saw Biden leading in all these states... except Georgia. The actual vote margins were much thinner than polls, everywhere except Minnesota and Virginia.

Fast forward to current, and Biden only leads in Minnesota and Virginia, with Minnesota being very tight, when adjusting for polling errors of past years.

So despite the hoopla, not much has really changed, except Pennsylvania has eased back into Trump territory.

Still a long way to go, but a look back to 2020 and/or 2016, does not look favorable for a dramatic shift, imho.

Until next time...