This Week in Petroleum Summary 9-27-2023, per EIA.GOV

Gasoline prices (per AAA) fell from last report's $3.875, to $3.832. One year ago the price was $3.747, and was rising higher into Mid October's peak, then heading for the December low of $3.096.

Consumption edged down -2.5% from previous week and appears to be going into the fall season decline, with the year over year up just +0.7%. 

Data per the EIA weekly report. 

Crude stocks decreased -2.2M barrels, from last week, and is -4.5% below the 5 year seasonal average. It should be noted the 5 year average includes the abnormal 2020 and 2021 number. Otherwise, the current inventory is -1.6% below that adjusted 5 year average.

Distillates inventory rose +340K barrels; and Gasoline inventories eose +1027K barrels. Distillates (-10.2%,-1.5%) and Gasoline (-0.9%, -0.2%) are both below 5 year and 3 year adjusted average inventories.

The SPR decreased -250K barrels this past week. Breaking a 7th consecutive week streak for increases, which were the first since January, 2021.

WTI is $93.72, compared to $90.27 (+3.8%), one week ago, and $81.24 one year ago (+15.4%).

Refinery slipped on a weekly basis, but remains above year ago levels.

For anyone interested, the U.S. has exported 873M barrels of crude and petroleum products, more than imported, since March 1, 2022. That number increased by 12M barrels this past week. 

Gasoline exports/imports saw a net increase of 728K barrels this past week, with the tally since March 1, 2022, being 113.7M barrels being exported over imports.

Despite the surge in crude prices this week, domestic demand points towards pump prices drifting lower. However, that may be based on hope, rather than real time data.

This wraps up my publication of the weekly petroleum summary. I will continue to track, but not publish.

My electricity bills over time (January 2017~ September 2023)

Once again, I monitor my residential electricity costs.

As always, weather is a factor in consumption, which is why a rolling average is also important. Currently, that 12 month rolling average is +0.6% above last year. Which might indicate the cost running slightly below last year, when factoring in the following.

[I suspect it might be lower, as I altered the thermostat settings in December of 2022. I adjusted the nighttime heating settings from 68°F to 72°F, which would increase the usage in winter time. Daytime heat settings remained at 72°F.

Cooling settings remain at 76°F daytime and 72°F for nighttime. Additionally, the number of days between meter readings vary.]

             

Currently, the 2023 average is above last year, but that is with 3 more months of bills to follow, which are generally... sightly lower than current average. Also, it should be noted that year over year... or base effects come into play, which tends to hide the overall increases. 

So what might seem like good news, still carries quite a bite on the budget. The CPI-U suggests that the average consumer spends about 2.559% of their expenses on electricity... or about $150 per month. 

My average is significantly short of that dollar amount, percentage wise. However my electricity expenses, compared to overall expenses, is well north of 2.559%. Which means other items in the expenditure basket are constrained.

While it (electricity costs) might end up being below last year, the cost of that electricity  has surged 11.6% since February, 2021. I don't expect it to fall back to levels of that time.

Natural Gas Summary, UK, EU, USA... Week Ending 9-22-2023

The Energy Information Administration released their weekly report.

The Pacific Region has pushed above year ago levels and is very near the 5 year average.

Now for a look at The European Union and United Kingdom.

[The reason for this observation is LNG, which has introduced the prospect of U.S. Natural Gas prices being affected by global demand for LNG. The EU and UK serve as a benchmark for these demand issues.]

Data from the Aggregated Gas Storage Inventory report...

The United Kingdom continues to slide in percent of storage filled. It should be noted that UK does have access to natural gas supplies and infrastructure for LNG. However, the flip side is more abrupt changes in pricing.

Which is most noticeable in the forward futures, as shown on this chart.

The US market continues to be somewhat stable. 

Comparison of Inflation in selected countries- September, 2023 Edition

With the United Kingdom, Canada and EUstats release of August data, I have updated my comparison graph. [Note, the USA(EU method) is directly from Eurostat.]

The USA (CPI: +3.7%; +2.5% Eurostate method) and Canada +4.0%, ticked up for the 2nd consecutive month, with regards to year over year inflation. 

The EU has marked 10 consecutive months of decline in year over year inflation at 5.9%. That figure was down from 6.1% last month. It was not even across the board, as Germany's 6.5% of last month, dipped to 6.4%, which was improvement, but some countries... such as France increased from 5.1% to 5.7%, according to Eurostat.

The UK has now marked its 3rd consecutive decline at 6.3%, with the month over month at +0.4%, which was up from previous 2 months.

This Week in Petroleum Summary 9-20-2023, per EIA.GOV

Gasoline prices (per AAA) rose from last report's $3.848, to $3.875. One year ago the price had fallen to $3.674, but was at a low, before heading higher into Mid October's peak, then heading for the December low of $3.096.

Consumption edged down -1.8% from previous week and may be going into the fall season decline, even though the year over year is still up +2.9%. 

Data per the EIA weekly report. 

Crude stocks decreased -2.1M barrels, from last week, and is -3.9% below the 5 year seasonal average. It should be noted the 5 year average includes the abnormal 2020 and 2021 number. Otherwise, the current inventory is -1.1% below that adjusted 5 year average.

Distillates inventory fell -2.9M barrels; and Gasoline inventories fell 831K barrels. Distillates (-11.5%,-3.1%) and Gasoline (-1.4%, -0.9%) are both below 5 year and 3 year adjusted average inventories.

The SPR increased another 600K barrels this past week. This is the 7th consecutive week for increases, which were the first since January, 2021.

WTI is $90.27, compared to $88.77 (+1.7%), one week ago, and $82.43 one year ago (+9.5%).

Refinery slipped on a weekly basis, but remains above year ago levels.

For anyone interested, the U.S. has exported 861M barrels of crude and petroleum products, more than imported, since March 1, 2022. That number increased by 16M barrels this past week. 

Gasoline exports/imports saw a net increase of 4.4M barrels this past week, with the tally since March 1, 2022, being 113M barrels being exported over imports.

Despite the draw on gasoline inventory, which was almost entirely a result of exports, the decrease in nationwide consumption indicates pump prices are at or near peak and some relief should follow.

Diesel prices are still leaning towards edging upward at this time. 

All of this is my opinion and yours may differ.

Natural Gas Summary, UK, EU, USA... Week Ending 9-15-2023

The Energy Information Administration released their weekly report.

The Pacific Region has pushed above year ago levels and is nearing the 5 year average.

EIA.GOV, via SNL Energy

Now for a look at The European Union and United Kingdom.

[The reason for this observation is LNG, which has introduced the prospect of U.S. Natural Gas prices being affected by global demand for LNG. The EU and UK serve as a benchmark for these demand issues.]

Data from the Aggregated Gas Storage Inventory report...

The overall EU pct. slipped since last week, but the volume in storage increased, as capacity increased.

While the EU as a whole, has approximately 100 days of supply, it should be noted that days supply varies greatly within the individual countries. 

Prices edged up in the EU and UK.

U.S. Henry Hub finished the week down -3¢.

Both TTF (Dutch) and UKG remain approximately double historical norms. Henry Hub is running about 2/3 of those norms. 

9-14-23, Advance Retail Sales Report for August Data

Advance Monthly Sales for Retail and Food Services, August 2023. 

Advance estimates of U.S. retail and food services sales for August 2023, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $697.6 billion, up 0.6 percent (±0.5 percent) from the previous month, and up 2.5 percent (±0.7 percent) above August 2022. Total sales for the June 2023 through August 2023 period were up 2.2 percent (±0.4 percent) from the same period a year ago. The June 2023 to July 2023 percent change was revised from up 0.7 percent (±0.5 percent) to up 0.5 percent (±0.2 percent).

Retail trade sales were up 0.6 percent (±0.5 percent) from July 2023, and up 1.6 percent (±0.5 percent) above last year. Gasoline stations were down 10.3 percent (±1.1 percent) from last year, while food services and drinking places were up 8.5 percent (±2.3 percent) from August 2022.

Again... "not for price changes", means not adjusted for inflation.

Much is being made of "gasoline's" impact, but the numbers, when adjusted for inflation continue to remain rather stagnant, with adjusted spending remaining rather flat since the roll out of the vaccines and that $1,400 stimulus in spring 2021. Which also coincides with the ramp up of inflation.

Last month, my mood was elevated, as previous month's data had been revised upward, after so many months of downward revisions. 

We seem to be at it again. Can I expect this month's numbers to be revised downward... next month? Revising a previous month downward, then claiming +0.6% increase, while then stating it is mostly gasoline, is befuddling to me. 

Somehow, I expect the cycle to continue, without anyone questioning those banner numbers.