News Release No. 362

DEPARTMENT OF NATURAL RESOURCES RELEASES LATEST INFORMATION ON CRUDE OIL, GASOLINE AND HEATING FUELS

Volume 32-362

Contact: Larry Archer

(For immediate release)

573-751-3807

JEFFERSON CITY, MO, NOV. 5, 2004 - The Missouri retail price for regular gasoline increased 2 cents per gallon from last month, standing at $1.87 per gallon as of Nov. 1, according to a survey released today by the Missouri Department of Natural Resources' Energy Center.

The Nov. 1 price is 47 cents higher than this time last year. Retail gasoline prices are falling throughout the United States due to improved refinery operations, stronger supplies of gasoline, which stand over 10 million barrels higher compared to last year, and flat consumer demand for motor gasoline, the Energy Center reported in its Nov. 4 edition of the Missouri Energy Bulletin.

The average retail price paid for regular unleaded gasoline in the United States was $2.02 per gallon. The agency's bimonthly fuels survey polled a selection of service stations throughout the state on the price of regular unleaded gasoline, diesel fuel, B-20 biodiesel fuel and E-85 ethanol. U.S. gasoline inventories increased slightly for the week ending Oct. 29 and are reported at approximately 202 million barrels, an increase of 0.5 million barrels from the previous week. Gasoline supplies are well within the 5-year average for this time of year.

During the last 4 weeks, U.S. crude oil prices have remained strong at the NYMEX, settling above $50 per barrel and setting an all-time record high price on Oct. 15 at $54.93. That is an increase of $22.98, or 72 percent higher compared to the closing price of $31.95 for the same date last year. On Nov. 3, crude oil closed at $50.89 per barrel.

Much of the price increase seen though out the months of September and October has been attributed to lost gas and oil production and off-shore imports resulting from tropical storms and hurricanes, including September's Hurricane Ivan. As of Nov. 2, about 0.2 million barrels per day of the region's normal output of 1.7 million barrels per day was still shut-in due to Ivan, according to the U.S. Minerals Management Service.

For the week ending Oct. 29, commercial crude oil stocks were up 6.3 million barrels but down by just 2.2 million barrels compared to this time last year. With total U.S. crude oil inventories at 289.7 million barrels, crude oil continues to trend well within the 5-year supply band for this time of year, according to the bulletin.

U.S. natural gas supplies were estimated at 3,293 billion cubic feet (Bcf) as of Friday, Oct. 29. U.S. supplies are currently 7.8 percent higher compared to the 5-year average and the highest level recorded in the past 11 years. Natural gas for December delivery at the NYMEX closed at $8.75 per MMBtu compared to $4.73 at this time last year.

U.S. propane supplies are 1 million barrels higher compared to last year at 67.5 million barrels. Missouri's average retail price for propane was $1.56 per gallon on Nov. 1 compared to $1.18 at this time last year, an increase of 32 percent.

The department's bimonthly energy bulletins are available online from the department's Web page at www.dnr.mo.gov/energy/transportation/fb.htm. The November 4 Energy Bulletin is available at www.dnr.mo.gov/energy/transportation/EB110404.pdf.

For more information, contact the Missouri Department of Natural Resources' Energy Center at 573-751-3443 or the department toll free at 800-361-4827.

For news releases on the Web, visit www.dnr.mo.gov/newsrel. For a complete listing of the department's upcoming meetings, hearings and events, visit the department's online calendar at www.dnr.mo.gov/calendar/search.do.

###