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U.S. DEPARTMENT OF ENERGY
WASHINGTON DC 20585

FOR IMMEDIATE RELEASE
FEBRUARY 5, 1997

EIA Says Fuel Supplies Adequate With Assist from Warmer-than-Normal Weather

Relatively mild weather in December, increased production of heating oil, and lower demand on natural gas storage inventories have eased the tight stock situation for winter fuels, according to Jay Hakes, Administrator of the Energy Information Administration.

Speaking today before the Independent Petroleum Association of America, Hakes presented new EIA data that show steady improvement in the stocks of winter fuels. While cold has gripped the Midwest, much of the rest of the country has enjoyed milder than normal weather, easing demand.

Preliminary data updating EIA's Short-Term Energy Outlook call for adequate supplies of heating oil, natural gas, and propane, although another two months of potentially severe winter weather remain. Oil prices, while moderating somewhat because of December's warm weather, are expected to remain at or above 1996 levels this year. Average gas prices may fall below 1996 levels, but remain high relative to 1995.

Although not normally a focus of attention during the heating season, low gasoline stocks have raised some concern about the summer driving outlook. Given the current supply and demand forecasts and world crude oil price outlook, the early expectation for 1997 gasoline prices is for a more typical seasonal increase than that seen last year. However, because gasoline prices currently are higher than they were a year ago, summer retail price levels are expected to be similar to those seen in 1996.

Graphs and talking points from Hakes' presentation may be accessed on EIA's World Wide Web site http://www.eia.doe.gov by clicking on EIA Administrator Presentations under Customer Services. They are also available from EIA's press contact.

The report described in this press release was prepared by the Energy Information Administration, the independent statistical and analytical agency within the U.S. Department of Energy.  The information contained in the report and the press release should be attributed to the Energy Information Administration and should not be construed as advocating or reflecting any policy position of the Department of Energy or any other organization.


EIA Program Contacts: John Cook, 202/586-5214; David Costello, 202/586-1468

EIA Press Contact: Thomas R. Welch, 202/586-1178

EIA-97-08

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