Posted: Monday, September 24th 2012 at 4:58am
Oil inventories spike, gas prices drop
TAMPA, Fla.- Bearish news hit the market last week and caused oil prices to settle below $93 for the first time since August 10. This is also the first week in 12, that motorists will see more significant price drops at the pump.
While inclement weather, the Federal Reserve's stimulus plan, and continued violence overseas has kept upward pressure on both oil and gas prices, last week's report on fuel demand reversed trends. U.S. inventories of crude oil spiked by 8.5 million barrels last week and made the largest gain since March. Reports also showed domestic fuel demand in August dropped to its lowest level in 15 years, according to the American Petroleum Institute.
"Whether or not this downward trend will continue is uncertain, what is certain is that we are going to see more volatility in oil prices," said Jessica Brady, AAA spokeswoman, The Auto Club Group. "Gas prices made more significant losses than recently seen with states averages in the Southeast falling 5 cents or more from last week."
A barrel of oil closed Friday on the New York Mercantile Exchange at $92.89--$6.11 less than the week prior.
The national average price of regular unleaded gasoline is $3.81, 5 cents less than last week. Florida’s average of $3.76 also fell 5 cents from last week. Tennessee’s average of $3.61 dropped 6 cents, while Georgia’s average of $3.69 fell 8 cents from last week, respectively.
Visit AAA’s Daily Fuel Gauge Report to find national, state, and local metro market retail gasoline prices.
Link: AAA Daily Fuel Gauge Report
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