News Release No. 498

DEPARTMENT OF NATURAL RESOURCES REPORTS STRONG CRUDE AND NATURAL GAS PRICES FOLLOWING COLD WEATHER

Volume 33-498

Contact: Larry Archer

(For immediate release)

573-751-3807

JEFFERSON CITY, MO, DEC. 9, 2005 -- Colder-than-normal temperatures east of the Rocky Mountains is credited for recent price increases to crude oil and natural gas, according to the Missouri Department of Natural Resources Energy Center's Energy Bulletin.

On Dec.7, natural gas futures closed at $13.70 per MMBtu, up $2.03 from last month and $7.02 or 105 percent higher than a year ago. According to the U.S. Department of Energy, as of Dec. 6 the outlook for the winter heating season through March 2006 expects households heating primarily with natural gas to spend $281 or 38 percent more for fuel this winter than last winter. Approximately 57 percent of Missouri households use natural gas for heat.

U.S. crude oil prices also remain strong with a settlement of $59.71 per barrel on Dec. 7 compared to $58.93 last month. Domestic crude supplies, supported by imports and increasing production levels, are over 320 million barrels, well above the 5-year average for this time of year.

In spite of higher crude oil prices compared to last month, on December 5, the average retail price for regular gasoline was $1.97 in Missouri, down 6 percent from last month, but 13 percent higher than last year. Missouri retail diesel fuel prices decreased 34 cents to an average retail price of $2.31 per gallon. The decline in retail prices is primarily due to higher domestic gasoline and diesel supplies, improved production levels from recovering Gulf Coast refineries, and an increase in imported fuels.

The state's average retail propane price as of Dec. 5 was $1.65 per gallon, down 2.0 cents from a month ago, yet 9 cents or 6 percent higher than a year ago. The U.S. Department of Energy anticipates propane-heated households will spend approximately $167 or 15 percent more this winter than last. Approximately 13 percent of Missouri households use propane for heat.

Distillate stocks, which include diesel fuel and heating oil, increased by 2.7 million barrels to 130.6 million barrels while gasoline supplies also increased by 2.7 million barrels to 202.6 million barrels for the week ending Dec. 2.

The complete Energy Bulletin for Dec. 8 is available online at www.dnr.mo.gov/energy/transportation/EB120805.pdf. The department's bimonthly energy bulletins are available online at www.dnr.mo.gov/energy/transportation/fb.htm.

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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