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U.S. ENERGY INFORMATION ADMINISTRATION Gasoline Price Falls Below $1 per Gallon Lowest Price in Nearly 5 YearsThe average retail price of regular gasoline in the United States fell below $1 per gallon this week, for the first time since January 1994, according to data collected by the Energy Information Administration (EIA). As of November 16, 1998, the national average cash self-service price of regular gasoline was 99.6 cents per gallon, down 1.2 cents from the week before. This week's average price was the lowest since January 10, 1994, when the price was 99.5 cents per gallon. The current average price is more than 17 cents per gallon below the price a year ago. The most significant factor in this price decline has been lower world crude oil prices, resulting from an excess of supplies over demand in the world oil market. The spot price of West Texas Intermediate crude oil on November 13 was $13.57 per barrel, down $7.19 (17.1 cents per gallon) from the same date in 1997. Although EIA does not expect crude oil or gasoline prices to go significantly lower this year, its latest forecast calls for only moderate price increases through 1999. According to the November update to EIA's Short-Term Energy Outlook, gasoline prices for the fourth quarter of 1998 are expected to be the lowest of the year, and are expected to rise only a few cents on average in 1999, in line with a forecast of only slightly stronger crude oil prices. Partially moderating the effects of declining crude oil prices in 1998 is the fact that U.S. gasoline demand in the second half of 1998 appears to be growing faster than earlier in the year. Current EIA projections call for 1998 U.S. gasoline demand to average more than 2 percent above that in 1997, after showing weaker growth in the early part of the year. Domestic gasoline inventories (primary stocks) of gasoline at the end of October were almost equal to year-ago levels. As recently as August, inventories had been 24 million barrels higher than a year earlier. Motor gasoline prices are collected on a weekly basis and are available by going to EIA's World Wide Web site (http://www.eia.doe.gov) and then selecting "Petroleum" or by going directly to: http://www.eia.doe.gov/oil_gas/petroleum/data_publications/weekly_retail_gasoline_prices/wrgp.html The price data are also available through EIA's Diesel Fuel and Motor Gasoline Hotline at (202) 586-6966 and in the publication Weekly Petroleum Status Report. EIA's Short-Term Energy Outlook is published monthly on EIA's Web Site and can be accessed at http://www.eia.doe.gov/emeu/steo/pub/contents.html. For more information contact the National Energy Information Center on (202) 586-8800.
EIA Program Contact: John Cook, 202/586-5214 EIA-98-28 Contact:
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