News Release No. 401

PRICE FOR HEATING FUELS DOWN SLIGHTLY
ACCORDING TO DEPARTMENT OF NATURAL RESOURCES

Volume 32-401

Contact: Larry Archer

(For immediate release)

573-751-3807

JEFFERSON CITY, MO, DEC. 23, 2004 -- Despite recent cold weather, the price for natural gas and propane for space heat are slightly lower than a month ago, according to a survey released today by the Missouri Department of Natural Resources' Energy Center.

U.S. natural gas supplies were estimated at 3,150 billion cubic feet (Bcf) as of Friday, Dec. 10. U.S. supplies are currently 14.3 percent higher compared to the 5-year average. Natural gas futures price at the NYMEX closed at $6.82 per MMBtu on Dec. 22 compared to $7.28 a month ago and $6.75 at this time last year, the Energy Center reported in its Dec. 23 edition of the Missouri Energy Bulletin.

U.S. propane supplies are 3.76 million barrels higher compared to last year at 58.8 million barrels. Missouri's average retail price for propane fell $0.03 per gallon during the last month to $1.53 per gallon on Dec. 20. However, prices were $1.23 at this time last year, an increase of 25 percent.

The Missouri retail price for regular gasoline decreased 17 cents per gallon from last month, standing at $1.60 per gallon as of Dec. 20 but continues to be over 20 percent higher than this time last year. The average retail price paid for regular unleaded gasoline in the United States was $1.82 per gallon.

Retail gasoline prices are falling throughout the United States due to strong gasoline production and imports, stronger supplies of gasoline in storage, which stand nearly 8.4 million barrels higher compared to last year, and a decrease in consumer demand for motor gasoline throughout the last month.

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 for the week ending Dec. 17 and are reported at approximately 211.4 million barrels, an increase of 1.8 million barrels from the previous week. Gasoline supplies are well within the 5-year average for this time of year.

Since Nov. 4, U.S. crude oil prices have dropped at the NYMEX, settling below $50 per barrel and nearing $40 on Dec. 10, the lowest price since July 21. NYMEX crude oil prices set an all-time record high price on Oct. 25 at $55.67 per barrel. On Dec. 22, crude oil closed at $44.24 per barrel.

For the week ending Dec. 17, U.S. commercial crude oil stocks were up 2.1 million barrels from the previous week and up 21.4 million barrels compared to this time last year. With total U.S. crude oil inventories at 295.9 million barrels, crude oil continues to trend well within the 5-year supply band for this time of year, according to the bulletin.

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 Dec. 23 Energy Bulletin is available at www.dnr.mo.gov/energy/transportation/EB122304.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.

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