Gas Price Movement- February 27, 2020

February 27, 2020

Brent Oil

Brent oil prices decreased by 14.15% or US$8.39, as prices fell this week relative to the prior week. Oil traded on February 27, 2020 at a price of US$50.92 per barrel relative to US$59.31 on February 20, 2020. Brent oil opened 2020 year at US$66.25 per barrel.

Petrojam prices

87 Octane prices increased this week by 2.39% (JMD$3.05). Additionally, 90 Octane increased by 2.34% or (JMD$3.05) this week. 87 Octane and 90 Octane opened the year 2020 at J$127.27 and J$130.11 respectively and now trades at J$130.79 and J$133.63 per litre respectively.

Figure 1: Petrojam, U.S. Gulf Coast Conventional Gasoline Regular, and Brent Crude Oil Price History

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U.S. average regular gasoline increase and diesel prices decrease

On February 24, 2020, it was noted that “the U.S. average regular gasoline retail price rose almost 4 cents from the previous week to $2.47 per gallon, 8 cents higher than the prior year. Moreover, the Gulf Coast price increased almost 7 cents to $2.15 per gallon, the Midwest price rose nearly 5 cents to $2.36 per gallon, the East Coast price rose close to 4 cents to $2.40 per gallon, and the West Coast price rose less than 1 cent, remaining at $3.14 per gallon. Whereas, the Rocky Mountain price decreased more than 3 cents to $2.44 per gallon.

The average diesel fuel price in the U.S. decreased almost 1 cent to $2.88 per gallon relative to the previous week, and 17 cents lower when compared to the same period last year. The West Coast, East Coast, and Rocky Mountain prices each experienced a decrease close to 1 cent to $3.46 per gallon, $2.93 per gallon, and $2.85 per gallon, a respectively, and the Gulf Coast and Midwest prices each declined less than 1 cent to $2.65 per gallon and $2.76 per gallon, respectively.

Inventories for Propane/propylene decrease

There was a decrease in U.S. propane/propylene stocks last week by 0.7 million barrels to 73.6 million barrels as of February 21, 2020. This was 19.3 million barrels (35.5%) higher than the five-year (2015-2019) average inventory levels year over year. Additionally, Midwest inventories experienced a decrease by 1.0 million barrels. East Coast inventories increased by 0.2 million barrels, and Gulf Coast and Rocky Mountain/West inventories each increased by 0.1 million barrels Propylene non-fuel-use inventories represented 7.4% of total propane/propylene inventories.

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