Clarksville, TN Online: News, Opinion, Arts & Entertainment.


AAA reports Oil Prices Falling, Gas Prices to drop soon

 

AAATampa, FL – Motorists should begin to notice lower gasoline prices in the coming weeks thanks to declining oil prices. Last week, a barrel of oil hit its lowest price since April, at a time when gasoline prices were about 20 cents cheaper.

“The decline at the pump is unlikely to be as dramatic as a 20 cent discount, but a few cents here and there is not out of the question,” said Mark Jenkins, spokesman, AAA – The Auto Club Group. “Usually gas prices respond more rapidly to rising oil prices than when oil prices fall. Prices at the pump aren’t as quick to fall when oil prices do because retailers first need to sell the gasoline in their tanks, which was purchased when gasoline was more expensive. Regardless, lower oil prices means it costs less to produce gasoline, which is good news for motorists.”

Historical Oil Prices - July 2015

Increased demand for gasoline should also prevent major immediate dips in prices at the pump.

The U.S. Energy Information Administration predicts that demand for gasoline in the U.S. will average over 9 million barrels a day for the first time since 2007.

The government agency attributes the increased demand to cheaper gasoline prices and higher employment which spurs more robust miles driven by American consumers.

The price for a barrel of oil settled at $52.74 Friday, and averaged $52.41 last week – $5.51 lower than the week before, $7.68 lower than the highest weekly average of 2015. Oil prices fell because the world remains massively oversupplied; Iran, the fourth-largest producer in OPEC, plans to boost crude exports; and the number of rigs drilling for oil in the U.S. rose for the second consecutive week.

Some analysts believe the oil reduction could continue, possibly flirting with the $50.00 threshold next week.

Local Prices

Florida’s state average price for a gallon of gasoline was $2.66 on Sunday – 1-cent cheaper than last week, 5 cents cheaper than a month ago, and 90 cents cheaper than the price this time last year.

Georgia’s state average price for gasoline was $2.655 on Sunday – almost a half cent cheaper than last week, 4 cents cheaper than a month ago, and 90 cents cheaper than the price this time last year.

Tennessee’s state average price for gasoline was $2.51 on Sunday – 1-cent cheaper than a week ago, 4 cents cheaper than a month ago, and 90 cents cheaper than the price this time last year.

Current and Past Price Averages

Regular Unleaded Gasoline

Sunday Saturday Week Ago Month Ago Year Ago
National $2.768 $2.761 $2.767 $2.785 $3.623
Florida $2.660 $2.663 $2.672 $2.705 $3.564
Georgia $2.655 $2.658 $2.659 $2.702 $3.528
Tennessee $2.510 $2.513 $2.523 $2.554 $3.406
Click here to view current gasoline price averages

 

AAA updates fuel price averages daily at www.fuelgaugereport.aaa.com

Every day up to 120,000 stations are surveyed based on credit card swipes and direct feeds in cooperation with the Oil Price Information Service (OPIS) and Wright Express for unmatched statistical reliability. All average retail prices in this report are for a gallon of regular, unleaded gasoline.

About The Auto Club Group

The Auto Club Group (ACG) is the second largest AAA club in North America. ACG and its affiliates provide membership, travel, insurance and financial services offerings to approximately 9 million members across eleven states and two U.S. territories including Florida, Georgia, Iowa, Michigan, Nebraska, North Dakota, Tennessee, Wisconsin, Puerto Rico and the U.S. Virgin Islands; most of Illinois and Minnesota; and a portion of Indiana.

ACG belongs to the national AAA federation with more than 55 million members in the United States and Canada and whose mission includes protecting and advancing freedom of mobility and improving traffic safety.


Sections

News

Topics

, , , , , , , , , , , , , , , , , , , ,

Comments

You must be logged in to post a comment.


  • Visit Us On FacebookVisit Us On TwitterVisit Us On PinterestVisit Us On YoutubeCheck Our FeedVisit Us On Instagram
  • Personal Controls

    Archives