AAA Reports National Gas, Oil Prices Down Since Mid-November

MINNEAPOLIS, Dec. 15, 2004 -- The national average price of self- serve regular gasoline is $1.83, down 14 cents since mid-November. The current national pump price average, however, is 36 cents higher than one year ago. The decline in retail prices follows a drop in crude oil prices, falling from $55 per barrel before the November 2 elections to $41 at the beginning of December, where it currently remains.

"Our U.S. fuel inventories were seriously depleted by the effects of Hurricane Ivan in September," said Shannon Swanson, AAA spokesperson. "Thankfully, our mild autumn and early-winter weather alleviated demand for home heating oil and helped boost both oil and gasoline supplies."

Last week, OPEC agreed to cut their oil production by 1 million barrels per day (from 27 to 26 million barrels per day) at the start of the new year. However, they also added that they would meet again on January 30, 2005, to assess market conditions. Oil traders have discounted this production cut because other oil producing nations are raising outputs and OPEC member nations often produce in excess of their official commitments.

Reports for December 15, 2004, reflect the following average prices per gallon for self-serve, regular unleaded gas:

                             Current           Month Ago          Year Ago
       National               $1.83              $1.97             $1.47
         Iowa                 $1.74              $1.88             $1.42
     Cedar Rapids             $1.80              $1.92             $1.44
      Davenport               $1.80              $1.89             $1.39
      Des Moines              $1.66              $1.80             $1.42
      Sioux City              $1.76              $1.90             $1.39
       Waterloo               $1.68              $1.89             $1.32

AAA's Fuel Gauge Report is based upon data from the Oil Price Information Service, the nation's most comprehensive source of petroleum pricing statistics, and can be found at http://www.fuelgaugereport.com/ .

AAA offers automotive, travel, insurance and financial services to more than 45 million members in the United States and Canada. AAA Minnesota/Iowa is part of The Auto Club Group, with 4.1 million members in eight Midwest states.