Positive Indicator: Buyers see no rise in energy prices
Purchasing survey reveals virtually no increase in buying
By Paul Teague -- Purchasing, 3/24/2009 9:03:00 AM
Buyers can cross energy prices off their list of issues to worry about—at least in the short term.
That’s one of the conclusions from the most recent Purchasing survey of buy
 LIKE WHAT YOU SEE? Then be sure to visit POSITIVE INDICATORS, Purchasing.com’s exclusive collection of data and economic indicators showing the U.S. economy is ready for a rebound. |
ers. Only 28% of buyers polled this month see a pickup in energy prices in the second quarter. Only 3% expect purchasing of energy products to increase.
In fact, U.S. government economists say the annual average domestic price of the key petroleum indicator--West Texas Intermediate (WTI) crude oil—will fall 58% this year, and that will trigger a 50% slide in retail prices of gasoline, diesel fuel and heating oil. WTI prices are already down 31% from the fourth quarter. Diesel prices have dropped 27% and fuel oil has fallen 45%.
The U.S. Energy Information Agency says regular-grade gasoline will average $1.96/gallon this year versus $3.26 per gallon in 2008.
Meanwhile, despite rising inventories, crude oil futures prices are rising this month, with prices exceeding $50 per barrel for the first time in almost four months. Nevertheless, the EIA sees the full-year price averaging $42 per barrel.
More details are in the latest Energy Flash Report, available for sale at www.purchasingdata.com.
Now Playing: 