Brent oil prices decreased by 1.39 % or US$1.12, as prices fell this week. Oil traded on May 24, 2018 at a price of $79.19 per barrel relative to US$80.31 last week. Brent oil began the year at US$68.07 per barrel.
87 Octane prices increased week over week, by 2.15% (JMD$2.79). Additionally 90 Octane rosel by 2.10% or (JMD$2.79) week over week. 87 Octane and 90 Octane opened the year at J$121.04 and J$123.88 respectively and now trades at J$132.62 and J$135.46 per litre respectively.
Figure 1: Petrojam, U.S. Gulf Coast Conventional Gasoline Regular and Brent Crude Oil 1 Year Price History
This Week in Petroleum
Higher gasoline prices arise due to crude oil increases as Memorial Day weekend approaches
“Normal gas prices have averaged $2.92 per gallon (gal) nationally on May 21, an increase from the prior year’s price of $2.40/gal before the holiday weekend. This has been the highest price ahead of the holidays since 2014’s $3.67/gal. Relatively greater crude oil spot prices, strong gasoline demand, and declining gasoline inventories are all factors influencing the climb in higher gasoline prices.”
“EIA predicts that gasoline prices will be more this summer compared to last summer mainly because EIA expects Brent crude oil prices to average $22 per barrel (b) higher than during last summer. U.S. gasoline prices have been more closely tied to Brent crude oil prices than to West Texas Intermediate prices. The Brent price grew significantly in 2018, averaging $78.17/b the week of May 18, 2018, which is a year-over-year $26.41/b (51%) increase from the same week of last year. Because gasoline taxes and retail distribution costs have been generally stable, movements in gasoline and diesel prices have been mainly the result of changes in crude oil prices, wholesale margins, and inventories.”
“EIA expects U.S. 2018 summer season (April through September) regular gasoline prices to average $2.90/gal, 49 cents higher than last summer. For all of 2018, EIA projects that U.S. regular gasoline prices will average $2.79/gal. The price of gasoline typically moves up in spring because of the change from winter-grade gasoline to the more expensive summer-grade gasoline. This year, the average price for regular gasoline has increased by 22 cents/gal (8%) since the start of summer driving season in April.”
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