The November 26, 2008, edition of This Week In Petroleum looked at profit margins for the dry mill fuel ethanol industry, pointing out the boom-and-bust cycles that had occurred. In 2009, ethanol producers’ margins continued to fluctuate as shown in Figure 1. The variable cost margin plotted in Figure 1 (“Ethanol Margin”) represents the difference between Chicago spot prices for ethanol (revenue) and the variable cost inputs of production, converted to their ethanol price equivalent in cents per gallon. It is sometimes referred to as the “producers’ margin”.¹

Sources: OPIS, Hart, Bloomberg.

The price (revenue) component of ethanol margins is influenced by the underlying ethanol supply-demand balance and by the price of gasoline, since nearly all fuel ethanol is blended with gasoline at up to 10 percent volume. When ethanol supply capacity is closely balanced with ethanol demand, the ethanol price to blenders after accounting for the tax credit typically follows the price of gasoline. However, when ethanol supply capacity is much greater than demand, the price of ethanol tends to drop below the gasoline price and settle closer to its variable production cost. This has been the situation in the ethanol market for much of the time since late 2007 when prices dropped in the wake of capacity expansions that were pushing ethanol supply capacity well past demand (see the November 18, 2009, edition of This Week in Petroleum. Figure 1 shows that ethanol prices (minus the blender tax credit)² have been below gasoline prices for most of the time since then, and Figure 2 shows how ethanol prices followed variable costs over the recent past.

Sources: OPIS, Hart, Bloomberg.
*Based on yield of 2.68 gallons of fuel ethanol per bushel of corn, changing to
2.75 in 2007. Dried Distiller’s Grains with Solubles (DDGS) are a byproduct of
ethanol production that is sold as animal feed.

Ethanol producers’ margins averaged 15 cents per gallon of ethanol during 2008, and about 8 cents per gallon from January through June 2009. Low ethanol production margins contributed to the extended shutdown of a number of plants beginning in late 2008, reaching over 100 thousand barrels per day (almost 15 percent of total nameplate capacity) by the end of the first quarter of 2009. The shutdowns allowed those plants still operating to run at an average utilization rate of about 95 percent, and ethanol production margins began to rise during the second half of 2009, averaging almost 40 cents per gallon. California may have also provided an extra boost to prices and ethanol production margins towards the end of the year as gasoline blenders increased ethanol content from 6 percent by volume to 10 percent, ahead of the implementation of a new California gasoline blending model that will permit 10 percent fuel ethanol in motor gasoline blends.³

Fuel ethanol margins peaked in mid-November at 68 cents per gallon, the highest level in more than two years, but they then slumped sharply to about 30 cents per gallon as ethanol prices fell in the last three weeks of the year, possibly as a result of the restart of some of the shutdown plants and a seasonal drop-off in gasoline (and thus ethanol) demand. Ethanol margins are likely to remain volatile. Still, with the renewable fuel mandate increasing in 2010, and with California moving to the 10 percent blending level in gasoline, demand for ethanol will increase, and ethanol producers may fare better in 2010 than in the first half of 2009.

Slight Downturn for U.S. Average Gasoline and Diesel Prices
The U.S. average price for regular gasoline dropped a penny to $2.74 per gallon, $0.89 higher than the average a year ago. On a regional basis, price changes were mixed. The East Coast price of $2.75 per gallon moved up less than a penny, while the price in the Rocky Mountains jumped up four cents to $2.62 per gallon. The price on the Gulf Coast was essentially unchanged at $2.62 per gallon. Prices in the Midwest and on the West Coast dropped, moving down over a penny on the West Coast to $2.95 per gallon and dropping nearly five cents to $2.68 per gallon in the Midwest. The average in California also fell, slipping two cents to $3.03 per gallon.

Diesel prices also slipped somewhat, with the national average falling a penny to $2.87 per gallon, $0.57 above the price last year. The average on the East Coast was essentially unchanged at $2.92 per gallon. In the Midwest, the average dipped a penny to $2.83 per gallon. On the Gulf Coast and on the West Coast, the averages dropped about two cents to $2.83 and $2.95 per gallon, respectively. In the Rocky Mountains, the price climbed more than a penny to settle at $2.83. The average in California dipped two cents to $3.01 per gallon.

Propane Stocks Continue to Sink
U.S. inventories of propane posted their largest drop of the current heating season with a 4.8 million barrel stock draw, leaving inventories at an estimated 41.1 million barrels. The Gulf Coast region led the decline with a 2.0 million barrel stock draw. The Midwest region was close behind with a 1.9 million barrel decline. The East Coast regional stocks drew 0.9 million barrels and the Rocky Mountain/West Coast region decreased slightly. Propylene non-fuel use inventories increased their share of total propane/propylene stocks from 7.6 percent to 8.3 percent.

Residential Heating Oil Prices Decrease
Residential heating oil prices decreased during the week ending January 18, 2010. The average residential heating oil price dropped 3.2 cents per gallon to reach 295.2 cents per gallon, which was 53.1 cents per gallon higher than the same time last year. Wholesale heating oil prices fell 15.0 cents per gallon to reach 214.1 cents per gallon, 54.3 cents per gallon higher than at this time last year.

The average residential propane prices rose 1.2 cents per gallon to reach 267.2 cents per gallon. This was an increase of 36.0 cents per gallon compared to the same period last year. Wholesale propane prices dropped 21.7 cents per gallon to reach 134.8 cents per gallon. This was an increase of 44.3 cents per gallon when compared to the January 19, 2009 price of 90.5 cents per gallon.

Source Energy Information Agency

U.S. Average Gasoline Price Moves Up Two Cents

The U.S. average price for regular gasoline increased two cents to $2.61 per gallon, $0.99 higher than the price a year ago. With the exception of the Rocky Mountains, prices rose in all regions of the country. The price on the East Coast inched up about a penny to $2.60 per gallon. The largest increase occurred in the Midwest, where the price rose more than three cents to $2.56 per gallon. On the Gulf Coast, the average grew over two cents to $2.47 per gallon. In the Rocky Mountains, the average price slipped less than a cent but remained at $2.50 per gallon. On the West Coast, the average increased a penny to $2.86 per gallon. The California price rose two cents to $2.93 per gallon.

For the first time in eight weeks, the national average price for diesel fuel increased. However, the price rose by less than a penny to remain essentially unchanged at $2.73 per gallon. The average is now $0.41 per gallon higher than last year. On the East Coast and Gulf Coast, the price increased a penny to $2.75 and $2.69 per gallon, respectively. The price in the Midwest was a fraction of a cent lower, staying at $2.71 per gallon. In the Rocky Mountains, the average dropped a penny to $2.73 per gallon. The average on the West Cost went up about two cents to $2.84 per gallon while at $2.90 per gallon, the price in California rose a penny.

Propane Inventories Fall
Propane inventories in the U.S. fell by 1.5 million barrels last week to 52.5 million. The largest draw of 1.1 million barrels occurred in the Gulf Coast region. The Midwest regional stocks fell by 0.5 million barrels and the Rock Mountain/West Coast region drew slightly. The East Cost regional stocks built by 0.1 million barrels. Propylene non-fuel use inventories increased their share of total propane/propylene stocks from 5.0 percent to 5.9 percent.

Residential Heating Prices Increase
Residential heating oil prices increased during the week ending December 28, 2009. The average residential heating oil price gained 4.3 cents per gallon to reach 279.7 cents per gallon, which was 46.7 cents per gallon higher than the same time last year. Wholesale heating oil prices jumped 10.9 cents per gallon to reach 213.2 cents per gallon, 77.1 cents per gallon higher than at this time last year.

The average residential propane price rose 6.2 cents per gallon to reach 246.6 cents per gallon. This was an increase of 14.9 cents per gallon compared to the same period last year. Wholesale propane prices increased 11.2 cents per gallon to reach 142.2 cents per gallon. This was an increase of 61.5 cents per gallon when compared to the December 29, 2008 price of 80.7 cents per gallon.

Third Quarter Earnings Decline for All Segments of the Oil and Natural Gas Industry

Earnings of oil and natural gas producers, refiner/marketers and oil field companies fell sharply in the third quarter 2009 (Q309) compared to a year ago, continuing the trend towards lower profitability evident during the first half of 2009. These results are drawn from quarterly EIA reporting on the financial performance of energy companies that together represent about half of U.S. oil and gas production and the majority of U.S. refining.

Based on data available at the time of the publication of the quarterly reports, crude oil prices paid by U.S. refiners averaged $66.37 per barrel in Q309, down by more than forty percent from the $113.52 per barrel recorded in the third quarter of 2008 (Q308). (All prices and price changes are in constant Q309 dollars.) Natural gas wellhead prices averaged $3.17 per thousand cubic feet (Mcf) in Q309, compared to an average of $8.86/Mcf in Q308.

The large integrated and large independent producers in EIA’s Financial Reporting System survey reported earnings of $15.8 billion in Q309 for the oil and gas production segment, down from $42.7 billion in Q308 (Figure 1). In the refining and marketing segment, which includes the operations of large integrated and large independent refiners, earnings dropped to $0.4 billion in Q309 from $9.7 billion in Q308; domestic refining/marketing operations lost $0.2 billion in Q309 while foreign operations earned $0.6 billion, as refining margins generally declined. Smaller independent producers reported income totaling over $0.2 billion in Q309, down from earnings of nearly $3.1 billion in Q308 (Figure 2). Reported net income of the majors and independent producers reflected revenues that have fallen (due to lower prices) faster than have operating costs.

The majors’ upstream capital expenditures declined relative to Q308 but by much less than the fall in net income, and were about equal to the third quarter average for 2004-2008 (Figure 3). In particular, worldwide oil and gas production capital expenditures fell 35 percent relative to Q308 and by a much smaller 1 percent relative to the third quarter average for 2004-2008. Despite the 96 percent decline in net income, worldwide refining/marketing investment by the majors only fell 5 percent in Q309 relative to Q308, but remained well above (34 percent) the third quarter average for 2004-2008.

Notwithstanding the reduction in capital expenditures, oil and natural gas production in Q309 continued to show growth. In each of this year’s quarters (Q109, Q209, and Q309) the reporting companies’ aggregate domestic oil production, foreign oil production, domestic natural gas production, and foreign natural gas production all increased over the comparable quarter in the prior year and are the only quarters in which this has happened since Q401. Further, domestic and foreign oil and gas production in Q309 all exceeded the third-quarter average over the previous five years. The increases in production, despite the sharp drop in capital expenditures, resulted from the lagged effects of higher capital expenditures in earlier periods.

Oil field company net income dropped 43 percent in Q309 from Q308 (Figure 2), as U.S. oil and gas rig counts in total fell by about 50 percent (Figure 4) from their peak level, reflecting the decline in prices and producer earnings. The latest data show that U.S. rig counts have recently increased, albeit slowly.

For more information, see the Financial News for Major Energy Companies, Third Quarter 2009 and the Financial News for Independent Energy Companies, Third Quarter 2009.

U.S. Average Gasoline and Diesel Prices Slip
Dropping three and one half cents to $2.60 per gallon, the U.S. average price for regular gasoline was $0.94 higher than the price a year ago. Prices declined in all regions of the country. The price on the East Coast decreased almost three cents to $2.62 per gallon. The largest decrease in price occurred in the Midwest where the average fell to $2.52 per gallon, a drop of a nickel. On the Gulf Coast, the average went down over four cents to $2.47 per gallon. In the Rocky Mountains, the average price dropped two cents to $2.54 per gallon. On the West Coast, the average slipped a penny to $2.85 per gallon while the California price fell a cent to $2.90 per gallon.

The national average price for diesel fuel fell for the sixth consecutive week, dropping two cents to $2.75 per gallon. The average is $0.33 per gallon higher than last year at this time. Average prices fell between two and three cents per gallon in all five principal regions of the country. On the East Coast, in the Midwest, and in the Rocky Mountains, prices fell over two cents to $2.77, $2.72, and $2.78 per gallon, respectively. On the Gulf and West Coasts, the averages slipped about three cents to $2.70 and $2.86 per gallon, respectively. The average in California declined roughly three cents to $2.92 per gallon.

Inventories of Propane Experience a Large Draw
Last week propane inventories experienced the largest weekly draw since February 2007, falling below the lower limit of the average range for the first time this year. Total U.S. inventories decreased 4.0 million barrels to 57.4 million barrels. The Gulf Coast regional stocks dropped 2.2 million barrels and the Midwest region declined 1.1 million barrels. The East Coast and Rocky Mountain/West Coast regions each drew 0.3 million barrels of inventory. Propylene non-fuel use inventories increased their share of total propane/propylene inventories from 3.5 percent to 4.2 percent.

Residential Heating Oil Prices Decrease
Residential heating oil prices dropped during the week ending December 14, 2009. The average residential heating oil price fell 1.5 cents per gallon to reach 274.8 cents per gallon, which was 27.8 cents per gallon higher than the same time last year. Wholesale heating oil prices decreased 9.8 cents per gallon to reach 197.0 cents per gallon, 39.3 cents per gallon higher than at this time last year.

The average residential propane price increased 1.8 cents per gallon to reach 235.5 cents per gallon. This was an increase of 1.4 cents per gallon compared to the same period last year. Wholesale propane prices fell 3.6 cents per gallon to 124.8 cents per gallon. This was an increase of 45.8 cents per gallon when compared to the December 15, 2008 price of 79.0 cents per gallon.

Source EIA

Short-Term Forecast is for Asian Oil Demand Growth

With the emerging Asian economies rebounding from the global economic downturn faster than the G-7 economies, the Asia-Pacific region is the leading driver of global economic recovery and higher oil demand. Although the emerging Asian economies were generally less exposed to financial risks and credit default arrangements than the U.S. and European economies, many of them have taken strong stimulus measures throughout 2009 that are expected to boost domestic demand, financial credit, and greater investment in transportation and infrastructure. Growth in oil demand will follow the increases in economic activity. The region’s oil demand declined for 4 consecutive quarters during the second half of 2008 and first half of 2009 as a result of severely declining export-led sectors; however, by the third quarter of 2009 the region’s oil demand was above its level in the third quarter of 2008.

The current global recession has affected Asian countries to varying degrees. EIA expects regional GDP, on an oil-consumption weighted basis, to grow by less than 1 percent in 2009 from the prior year. Despite the upturn in oil demand in the second half of 2009, EIA’s latest Short-Term Energy Outlook forecast for 2009 shows the first annual average oil demand reduction in Asia since the Asian financial crisis in 1998.

China is leading both the Asian recovery and the rebound in the region’s oil demand. As a result of the $586 billion (RMB 4 trillion; the RMB is the Chinese currency) fiscal infusion to stimulate several sectors including transportation, infrastructure, and manufacturing, China’s overall domestic consumption levels and industrial output began rising earlier this year. As China uses its stimulus package to build up domestic demand and address public works projects such as infrastructure development, the country’s demand for less commonly used oil products, such as asphalt, has contributed significantly to incremental demand. Demand for naphtha in China’s rising petrochemical industry, as well as for gasoline and gasoil, has gradually picked up in the second half of 2009. EIA estimates China’s overall oil demand in 2009 will be nearly 400 thousand barrels per day (bbl/d) above its 2008 level, growing from 7.83 million bbl/d to 8.21 million bbl/d. In 2010, EIA anticipates China’s GDP growth to top 8 percent, leading to oil demand 4.9 percent higher than 2009, reaching a level of 8.61 million bbl/d.

Oil demand in India, the other engine of Asian growth, demonstrated growth throughout 2009, and EIA estimates that absolute growth will average 150 thousand bbl/d, raising the 2009 level to 3.11 million bbl/d. Because India’s economy is highly service- and technology-oriented rather than like the export-oriented East Asian economies, the country is less susceptible to falling global demand for industrial products, resulting in less volatile energy demand than other Asian economies. The Indian government announced several stimulus packages since late 2008, funded mostly through tax cuts and monetary measures. The stimulus spending in 2009 has already boosted diesel and gasoline demand as the government targets growth in the infrastructure, transportation, and manufacturing sectors. The government-controlled retail pricing scheme and subsidized oil products, such as LPG, props up oil demand as well. EIA expects India’s economy to incrementally grow in 2010 in light of higher fiscal spending as part of the new 2009-10 budget and lead to an additional 130 thousand bbl/d of oil in 2010.

Other Asian market economies (excluding China and India) are showing significant turnaround in the latter half of 2009 as their industrial production has picked up some steam. Many of these countries are major exporters of intermediate industrial products to China. Therefore, as China’s domestic and export demand rises in the short run, so, too, will the oil demand for these countries. South Korea, an OECD country, has demonstrated positive oil demand growth since the second quarter of 2009 on the back of an aggressive US$12 billion stimulus package focused on infrastructure development and a rise in naphtha use in its petrochemical industry. However, oil use in Japan, another OECD country and one of the largest oil-consuming nations, is still declining. Other factors contributing to declining oil use in Japan are strong energy efficiency measures and fuel switching in the power sector to nuclear and natural gas. As more nuclear facilities are brought out of maintenance, oil demand is expected to drop in this sector.

On the whole, EIA expects the Asia-Pacific region to exhibit positive oil demand growth led by fast-growing non-OECD countries such as China and India. Oil demand in 2010 should grow on average around 0.5 million bbl/d, rising to 25.5 million bbl/d for the region.

U.S. Average Gasoline Price Moves Up Half a Cent
At $2.63 per gallon, the U.S. average price for regular gasoline was half a cent above last week and $0.94 higher than a year ago. On a regional basis, prices declined somewhat in the Midwest, the Rocky Mountains, and on the West Coast while rising on the East and Gulf Coasts. The price on the East Coast increased a penny to $2.64 per gallon. Although the average price on the Gulf Coast gained two cents, it remained the lowest of any region at $2.52 per gallon. In the Midwest, the average dipped a fraction of a cent but remained at $2.57 per gallon. In the Rocky Mountains, the price dropped a penny to settle at $2.56 per gallon. The average on the West Coast slipped half a penny to $2.86 per gallon. The average in California fell a penny to $2.91 per gallon.

Recording the fifth consecutive weekly decrease, the national average price for diesel fuel slipped a fraction of a cent to $2.77 per gallon. The average is $0.26 per gallon higher than the average last year at this time. On a regional basis, the East Coast price was flat, while changes were mixed elsewhere. With the exception of the Rocky Mountains where the average dropped a bit more than a penny, prices in other regions, whether increasing or decreasing, each changed by less than one cent.

Propane Stocks Continue to Draw
Over the past eight weeks, propane inventories have plummeted 11.5 million barrels from a level well above the average range to near the lower boundary of the average range. Total U.S. inventories of propane fell by 1.3 million barrels last week to 61.4 million barrels. The Midwest regional stocks experienced the largest decline of 0.8 million barrels. The Gulf Coast region drew by 0.4 million barrels and the Rocky Mountain/West Coast region fell by 0.1 million barrels. The East Coast regional inventories grew slightly. Propylene non-fuel use inventories increased their share of total propane/propylene inventories from 3.4 percent to 3.5 percent. Propane production increased to the highest level since June 5, 2009 at 1.1 million barrels a day.

Residential Fuel Prices Increase
Residential heating oil prices rose during the period ending December 7, 2009. The average residential heating oil price gained 1.6 cents per gallon last week to reach 276.3 cents per gallon, an increase of 25.1 cents per gallon from the same time last year. Wholesale heating oil prices increased 1.3 cents per gallon to reach 206.8 cents per gallon, 54.9 cents per gallon higher than at this time last year.

The average residential propane price increased 4.6 cents per gallon to reach 233.8 cents per gallon. This was a decrease of 3.1 cents per gallon compared to the 236.9 cents per gallon average from the same period last year. Wholesale propane prices rose 5.6 cents per gallon, from 122.8 cents per gallon to 128.4 cents per gallon. This was an increase of 58.1 cents per gallon when compared to the December 8, 2008 price of 70.3 cents per gallon.

The Energy Information Administration’s (EIA) U.S. Crude Oil, Natural Gas, and Natural Gas Liquids Proved Reserves, 2008 reports that proved reserves of crude oil fell by more than 10 percent in 2008, primarily because of low end-of-year prices used to estimate proved reserves, even though discoveries of crude oil rose for the third year in a row. In contrast, proved reserves of natural gas rose by 3 percent in 2008, despite low end-of-year prices.

Proved reserves are those volumes that geological and engineering data demonstrate with reasonable certainty to be recoverable from known reservoirs under existing economic and operating conditions. Under Securities and Exchange Commission (SEC) rules in effect since 1982, operators assessed their 2008 proved reserves based on the market price on the last day of the year.

Crude Oil. The end-of-year crude oil price for 2008 – $44.60 per barrel for West Texas Intermediate (WTI) crude oil – was less than half the end-of-year price for 2007 – $95.95 per barrel. As a result, operators reported record negative net revisions of more than 2 billion barrels to their proved reserves estimates, more than they produced during the year.

Under updated SEC rules issued in 2008 that take effect in 2010, operators will instead use an annual average of first-day-of-the-month prices to develop their reserves estimates. This average price will be less sensitive to volatility in prices. The SEC’s new rules would have shown an increase in oil prices from $71.79 per barrel in 2007 to $101.63 per barrel in 2008, a 42 percent price increase rather than the significant decline operators actually used. Under the new rules, there would likely have been a smaller drop (or possibly even an increase) in crude oil proved reserves.

Despite the record negative revisions to proved crude oil reserves, 2008 saw a drilling boom in the first half of the year and an increase in new discoveries of crude oil for the year. One notable source of increased discoveries was North Dakota (167 million barrels), representing rapid proved reserves growth in the Bakken shale and the underlying Three Forks formation. Operators can produce oil from the Bakken using the same horizontal drilling and hydraulic fracturing techniques used so widely for natural gas shale production. (Note, however, that the production of oil from the layers of shale like those in the Bakken Formation is not the same as the extraction of oil from oil shale plays. See This Week In Petroleum, March 4, 2009.)

Natural Gas. Proved reserves of natural gas rose by 3 percent in 2008, despite relatively weak year-end prices. This followed a 13 percent increase in 2007. Proved reserves stood at 245 trillion cubic feet (Tcf) at the end of 2008, the highest level in the 32 years that EIA has collected these data. In both years, growth in proved reserves was due largely to continued development of unconventional natural gas from shales.

Total discoveries amounted to 29.5 Tcf, more than enough to offset both production and negative net revisions that arose largely from low year-end prices. Most discoveries were reported as “extensions.” This reflects the fact that the bulk of proved reserves additions occur after the initial discovery of a field or reservoir, as further exploration extends the original boundary.

U.S. Average Gasoline and Diesel Prices Move Up
The U.S. average retail price for regular gasoline gained 2 cents this week to reach $2.694 per gallon, the highest level this year. This surpassed the previous 2009 weekly high of $2.691 per gallon seen on June 22. The national average is now $0.29 per gallon higher than it was a year ago. Prices increased in all regions of the country. In the Rocky Mountains, the average increased three cents to $2.61 per gallon. The price rose roughly two cents in each of the other major regions, from one and a half cents in the Midwest and Gulf Coast to a bit over two cents in the East Coast and the West Coast. Prices ranged from a low of $2.56 in the Gulf Coast to a high of $2.91 in the West Coast. The average in California was essentially unchanged at $2.99 per gallon.

The national average price of diesel fuel inched up about a penny to $2.81 per gallon. Despite a cumulative increase over the past four weeks of $0.23 per gallon, the average remains $0.28 per gallon below a year ago. Prices increased in most regions of the country. The average on the East Coast went up about two cents to $2.83 per gallon. The Gulf Coast and West Coast prices edged up about a penny to $2.75 and $2.91 per gallon, respectively. In California, the average rose about a penny to $2.97 per gallon. The Rocky Mountains experienced the largest increase, moving up more than three cents to $2.81 per gallon. At $2.79 per gallon, the price in the Midwest was essentially unchanged, slipping less than half a cent.

Propane Inventories Continue Decline
Propane stocks continued to draw throughout most of the U.S. last week, falling by 1.4 million barrels to approximately 69.6 million barrels. The largest regional decline of 0.9 million barrels occurred in the Midwest, reflecting crop-drying demand. The Gulf Coast region drew 0.5 million barrels and the East Coast regional stocks fell by 0.1 million barrels. The Rocky Mountain/West Coast region grew slightly. Propylene non-fuel use inventories slightly increased their share of total propane/propylene inventories from 3.3 percent to 3.4 percent.

Residential Heating Fuel Prices Increase
Residential heating oil prices increased slightly during the period ending November 2, 2009. The average residential heating oil price rose 1.2 cents per gallon last week to reach 273.4 cents per gallon, a decrease of 25.3 cents per gallon from the same time last year. Wholesale heating oil prices dropped 7.3 cents per gallon to reach 207.6 cents per gallon, which was 7.4 cents per gallon lower than last year at this time.

The average residential propane price rose 2.8 cents per gallon to reach 218.5 cents per gallon. This was a decrease of 31.5 cents per gallon compared to the 250.0 cents per gallon average from the same period last year. Wholesale propane prices fell 2.1 cents per gallon, from 118.5 cents per gallon to 116.4 cents per gallon. This was an increase of 9.6 cents per gallon when compared to the November 3, 2008 price of 106.8 cents per gallon.

Text from the previous editions of “This Week In Petroleum” is now accessible through a link at the top right-hand corner of this page.

Source EIA

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