This Week in Petroleum Summary July 17th, 2024 per EIA.GOV

This week's full report. 

Gasoline fell -2.5¢ for the week, and remains below year ago levels, by -5.3¢, or -1.5%. Days supply jumped to 25.5, from 24.7. For perspective... last year was 23.9.

Inventories were mixed, with crude down -4.9M barrels; Distillates up +3.5M barrels; Gasoline rose +3.3M barrels. Total Petroleum + products +SPR rose +11.1M barrels, with the SPR rising +650K barrels.

So despite the crude draw, the crude plus refined products and SPR was up strong.

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 eased further from last week's $23.36, to $22.35. Gasoline at $13.56 from last week's $13.97. Distillates to $8.79, compared to last week's $9.39.

That downward push does bode well for slightly more easing at the pump.

Advance Retail Sales Report- July 16, 2024

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

Advance estimates of U.S. retail and food services sales for June 2024, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $704.3 billion, virtually unchanged (±0.5 percent)* from the previous month, but up 2.3 percent (±0.5 percent) above June 2023. Total sales for the April 2024 through June 2024 period were up 2.5 percent (±0.5 percent) from the same period a year ago. The April 2024 to May 2024 percent change was revised from up 0.1 percent (±0.4 percent)* to up 0.3 percent (±0.2 percent).

Hard to keep up with the revisions, but here they are (click, to enlarge)...

It doesn't take much effort to see before revisions, the nominal figure is akin to the advance of September, 2023. 

However, when adjusted for inflation...

The quantity of goods is flat. Looking at the 12 month moving average, based on inflation adjustments... current is below, and has been for all of 2024.

Not sure where the good news, regarding growth... is to be found. Granted, it has not fallen off a cliff, but "real" growth is not to be found in this report, imho.

There were winners on the month and year, highlighted in green, with losers in red, with all numbers in nominal dollars (thousands).

Clearly, gasoline stations would show a nominal dollar drop, with decrease in pump prices. Food services and drinking places continues to increase.

My electricity bills over time (July, 2024 Edition)

My electricity usage over time. I track many things to monitor my inflation versus the CPI.

The July bill came in much higher than last year. +23.8% from same month, last year. Granted, it is bill only, not adjusted for days in the reading, etc.

As for the rolling 12 month average...

The rolling average is down -4.8% from one year ago. However, I am not sure that will last, as it has been hot AND dry in my neck of the woods. 

Hopefully, a cool spell will ease into the forecast. 

A Foray Into the 2024 Presidential Election, July 14th Edition

Warning... a very long post!

Note: This is data collection and analysis, as it stands right now. Granted, yesterday's events may alter this data in the future, but that is for the future to decide. 

As of this writing, Biden is still in the race. He doesn't seem to be really slipping in the polls. There is still a chance that he could win enough electoral votes. How??

The democratic party is running on a save democracy campaign. As such they are trying to save democracy by preventing 3rd party candidates, such as Robert Kennedy Jr., from getting on the ballot in so called battleground states. As of this writing, he has made it on the ballot of several states, but the battleground states, are few, and are highlighted in yellow. 

All of these states are polled as if 3rd parties are on the ballot, including RFK Jr. The Democrat strategy being that 3rd parties pulling support away from Biden moreso, than they are from Trump. 

Further, if these 3rd party candidates are not on the November ballot, then those voters will fall back into line for either Biden or Trump, and the belief being, this will benefit Biden much more than Trump.

So the defenders of democracy are furiously eroding any attempts at democracy, or so it seems.

If they succeed, the race really tightens up, from an electoral count point of view, as in toss-up.

It has made it into the mainstream media, but not really on the evening news. Apparently, it is very undemocratic to interfere with the democrats. /s

Nationally, the polls in those battleground states still show Biden in a precarious position. The problem is down the ballot. It is one thing, as a democrat from [insert district] with a tight election, to paint the republican opponent as being a Trump advocate. Quite another to pledge allegiance to Biden, which can and will be used against said democrat... endlessly.

The current polling comparison, which does omit 3rd party numbers.

A state such as Arizona, does have 3rd parties on the ballot. So the likelihood of a Trump victory in that state remains fairly strong. 

However a seemingly safe state such as Georgia, without the 3rd party option could possibly edge into toss-up or even Biden, given the 8.1% polling for Kennedy.

Maine would likely move back into 1 for Trump and 3 for Biden.

Nevada, which seems to be in the Trump camp, would narrow, but still be in the Trump camp, considering Kennedy's 8.9% polling.

North Carolina, with Kennedy at 8.4%, could become toss-up.

Pennsylvania, with Kennedy at 8.3%, would almost certainly be in the Biden camp, but still in toss-up range.

Virginia, would almost certainly... moved back solidly, into the Biden Camp.

Wisconsin is at 7.5% polling for Kennedy, and would throw the state into the toss-up category.

If Kennedy and other 3rd parties are on the ballot in all the battleground states, the Trump lead of 301~195 in electoral votes over Biden seems quite plausible, with 270 being the magic number.

However, as it stands right now on ballot availability, the Trump lead narrows to 242~207, over Biden.

Hence the "save democracy" campaign, while simultaneously obstructing democracy.

Finally, a word about pollsters. If pollster A, interviews 1000 people and states one candidate leads, by a certain number of points... when they do their next set of interviews, is it the same 1000 people, a different group of people, or a mix. Does pollster B, interview the same group of people, etc.

The results of one poll, does not provide an accurate gauge. Several polls together might give a clearer picture. Then there is the accuracy of such polls, compared to real election results. 

So, there have not been a lot of state level polls to gauge which direction the race is going... post debate. So beware of polls saying this candidate is gaining or losing ground. Still too early. Maybe by end of July, there will be enough data. But who knows what will happen in the next 17 days, let alone the final 114 days before election.

This was way too long a post. Gotta cut back!!

PPI July 2024 release with June 2024 Data

The BLS has released the July, 2024 Producer Price Index Report for the month of June.  (historical releases)

The Producer Price Index for final demand advanced 0.2 percent in June, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices were unchanged in May and increased 0.5 percent in April. (See table A.) On an unadjusted basis, the index for final demand rose 2.6 percent for the 12 months ended in June, the largest advance since moving up 2.7 percent for the 12 months ended March 2023. [emphasis added]

The report card is similar to last month's.

Product detail: Over 60 percent of the June decrease in the index for final demand goods can be traced to a 5.8-percent decline in prices for gasoline. The indexes for processed poultry, residential electric power, diesel fuel, jet fuel, and fresh and dry vegetables also moved lower. Conversely, prices for chicken eggs increased 55.4 percent. The indexes for residential natural gas and for aluminum base scrap also advanced.

Considering the drop off of energy, which was largely seasonal for gasoline... it is difficult to imagine inflation is dead. Couple that with the overall being the highest 12 month reading since March 2023, that notion of inflation being alive still persists imho.

 

BLS Data Dump. Real Earnings - July 11th, 2024

On to the Real Earnings.

Harkening back to February 2020, when the real hourly rate was $11.02, that rate is now $11.18 for hourly- private non farm payrolls, seasonally adjusted. 

Whereas real  weekly earnings for that same cohort has moved from $378.92 to $383.49.

For the real hourly earnings of Production and Non-Supervisory of $9.49 in February 2020, is now $9.79.

The real weekly earnings for this group moved from $319.90, to 329.92.

All the above data is based directly on the CPI-U to get the "real" component. 

BLS Data Dump. CPI - July 11th, 2024

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

The Consumer Price Index for All Urban Consumers (CPI-U) declined 0.1 percent on a seasonally adjusted basis, after being unchanged in May, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 3.0 percent before seasonal adjustment.

The index for gasoline fell 3.8 percent in June, after declining 3.6 percent in May, more than offsetting an increase in shelter. The energy index fell 2.0 percent over the month, as it did the preceding month. The index for food increased 0.2 percent in June. The food away from home index rose 0.4 percent over the month, while the food at home index increased 0.1 percent. [emphasis added]

A lot of chatter about this being the first negative in 4 years and means rate cuts are an almost certainty. 

A bit of reality... From the December 2022 report. 

The Consumer Price Index for All Urban Consumers (CPI-U) declined 0.1 percent in December on a seasonally adjusted basis, after increasing 0.1 percent in November, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 6.5 percent before seasonal adjustment.

The index for gasoline was by far the largest contributor to the monthly all items decrease, more than offsetting increases in shelter indexes.

For the record, the FED increased rates 4 times by 25 basis points each , starting on 2-1-2023, 3-22-2023, 5-3-2023, and 7-26-2023.

That is in no way suggesting further rate hikes, but should dampen the enthusiasm, given a couple of key phrases in the CPI release. The drop in gasoline prices have probably hit bottom and could inch up in July. To put it in perspective, that -0.1% adjusted would have been more like +0.1% adjusted. That 0.0% unadjusted, would have been +0.2% unadjusted.

Likely, the month to month for July, will indicate something like +0.2% ~ +0.3%, when kicking in the anticipated increase in food, especially the food away from home.

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

My own personal CPI rose 3.1% Y/Y and 0.1% on the month...

Taking a look at the current report card...

My inflation rate is slowing, but following several years of my personal inflation being below the COLA, I am not so happy, with the current outlook.

Don't get me wrong, I would rather the COLA goes lower, as that indicates less inflation. I do, however, need to adjust my spending, or suck it up.