National Average Price Per Gallon: $3.171
Crude futures hovered close to multiyear highs on Tuesday.
Analysts are watching the market closely to see how President Trump’s decision on the Iran nuclear deal affects the crude market.
Iran’s oil production rebounded to nearly 4 million barrels per day after world powers eased sanctions over the country’s nuclear program. However, analysts are now warning that reimposing sanctions could reduce Iranian oil exports by up to 1 million barrels per day. Such a move would cause a “supply shock” that would drive up the price of crude.
Framing lumber: $525
Panels/plywood: $536
An increase in seasonal demand pushed the Random Lengths Framing Lumber Composite Price to a new high of $525, easily passing the previous high of $513 set in March.
In comparison, structural panel prices saw only modest gains. Mills extended order files into late May.
The Bureau of Labor Statistics released April’s job numbers on May 4.
The unemployment rate dropped to 3.9%, the lowest since 2000 and a sign that the job market has become even more competitive. It had been holding steady at 4.1% since October.
Economists expect that low unemployment will lead to higher wages as employers fight over a dwindling candidate pool. However, wages have risen by less than expected so far. Last month they increased by only 4 cents, equating to a gain of 2.6% since the start of the year. This is slightly off-pace from the previous month.
Sources: Random Lengths, EIA, CNBC (1), CNBC (2)