Gas Price Movement-March 5, 2020

March 5, 2020

Brent Oil

Brent oil prices decreased by 14.21% or US$8.27, as prices fell this week relative to the prior week. Oil traded on March 05, 2020 at a price of US$49.91 per barrel relative to US$58.18 on February 27, 2020. Brent oil opened 2020 year at US$66.25 per barrel.

Petrojam prices

87 Octane prices decreased this week by 2.31% (JMD$3.02). Additionally, 90 Octane decreased by 2.26% or (JMD$3.02) 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$127.77 and J$130.61 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 and diesel prices decrease

On March 2, 2020, it was noted that “the U.S. average regular gasoline retail price decreased over 4 cents from the previous week to $2.42 per gallon, less than 1 cent higher than the prior year.” The Midwest price decreased almost 6 cents to $2.30 per gallon, the East Coast price fell close to 5 cents to $2.35 per gallon, the Gulf Coast price declined nearly 4 cents to $2.11 per gallon, the Rocky Mountain price declined over 2 cents to $2.42 per gallon, while the West Coast price experienced a decrease of almost 1 cent to $3.13 per gallon.

The average diesel fuel price in the U.S. decreased over 1 cent to $2.85 per gallon relative to the previous week, and 23 cents lower when compared to the same period last year. The West Coast price fell close to 4 cents to $3.42 per gallon, the East Coast and Midwest prices each experienced a decrease of 3 cents to $2.90 per gallon and $2.73 per gallon, respectively, the Gulf Coast price fell almost 3 cents to $2.63 per gallon, whereas the Rocky Mountain price declined more than 2 cents to $2.83 per gallon.

Inventories for Propane/propylene decrease

There was a decrease in U.S. propane/propylene stocks last week by 3.6 million barrels to 70.0 million barrels as of February 28, 2020. This was 18.8 million barrels (36.7%) higher than the five-year (2015-2019) average inventory levels year over year.

Additionally, Gulf Coast inventories recorded a decrease by 1.6 million barrels, Midwest inventories fell by 1.5 million barrels, and East Coast and Rocky Mountain/West Coast inventories each experienced a decrease by 0.3 million barrels. Propylene non-fuel-use inventories represented 7.7% of total propane/propylene inventories.

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