Gas Prices Down in Northern California, says AAA; But Crude Prices Rise as OPEC Cuts Shrink Worldwide Oil Glut

18 November 1999

Gas Prices Down in Northern California, says AAA; But Crude Prices Rise as OPEC Cuts Shrink Worldwide Oil Glut

    SAN FRANCISCO---Nov. 16, 1999--Pre-Thanksgiving gas prices in Northern California are down 6 cents from last month but higher than this time last year, AAA reported today.
    "For the third consecutive month, gas prices are falling in Northern California," said Paul Moreno, spokesman for AAA of Northern California. "But it's hard for consumers to be thankful when prices are 26 cents higher than last November."
    The Northern California average fell 6 cents in four weeks to $1.43 for a gallon of self-serve regular unleaded, according to AAA's monthly gas price survey. The nine-county Bay Area average is $1.45, down 8 cents in the same period.
    In Southern California, the average gas price is $1.36, says AAA.
    Nationwide, prices are down a penny a gallon to $1.28 in a month, according to AAA.
    Oil prices surged this week on reports showing a drop in worldwide oil inventories. Earlier this year, members of the Organization of Petroleum Exporting Countries agreed to cut production after seeing oil prices sink to as low as $11 a barrel at the peak of the global glut of oil.
    OPEC efforts to lift market prices appear to be working, with a barrel of West Texas Intermediate - the U.S. benchmark crude - selling for more than $25 on the New York Mercantile Exchange this week - the highest price in nearly three years.
    "The real catalyst was the International Energy Agency's monthly report showing oil inventories trending down in industrialized nations," said Alan Kovski, an energy analyst with the Kiplinger Washington Letter. "Demand is higher than supply."
    Despite rising oil prices, Kovski expects gasoline prices to remain level or rise only slightly through January, since the lower demand from less driving in winter will help offset higher crude costs.
    Below are today's city averages in Northern California, with the price change since Oct. 19 in parentheses.



--       Chico, $1.32 (down 9 cents)
--       Concord, $1.36 (down 7 cents)
--       Eureka, $1.53 (down 11 cents)
--       Fresno, $1.38 (down 2 cents)
--       Lake Tahoe, $1.56 (down 3 cents)
--       Modesto, $1.33 (down 6 cents)
--       Monterey, $1.43 (down a nickel)
--       Oakland, $1.47 (down 7 cents)
--       Redding, $1.42 (down 6 cents)
--       Sacramento, $1.36 (down a nickel)
--       Salinas, $1.39 (down 9 cents)
--       San Francisco, $1.51 (down 11 cents)
--       San Jose, $1.44 (down 7 cents)
--       San Mateo, $1.48 (down 9 cents)
--       San Rafael, $1.44 (down 11 cents)
--       Santa Cruz, $1.48 (down 6 cents)
--       Santa Rosa, $1.44 (down a nickel)
--       Stockton, $1.36 (down a penny)

    In Nevada, gas prices average $1.43, down 3 cents in four weeks. In Utah, the average of $1.35 is down 4 cents in a month, according to AAA.
    Established nearly 100 years ago, AAA offers a wide array of automotive, travel, insurance and financial services. The California State Automobile Association serves nearly 4 million members and is the second largest regional affiliate of the national AAA organization.

    NOTE TO EDITORS: A chart showing 12 months of city averages is available. The next AAA gas price survey will be on Dec. 14.