Posted: Monday, October 22nd 2012 at 4:57am
Gas prices inch lower toward 2011 levels
TAMPA, Fla. -- Retail gas prices moved lower last week and are expected to do the same again this week. Southeast gas prices are about 15 cents more than they were this time last year and it's likely prices will reach year-ago levels if this decline continues as expected.
"We're back to the basic fundamentals of supply and demand moving the market," said Jessica Brady, AAA spokeswoman, The Auto Club Group. "Oil supplies continue to increase as demand weakens across the board. Both oil and gas prices are likely to fall this week with a weakening euro, lackluster demand, and growing supplies."
The debt crisis in Europe continues to plague demand numbers overseas and caused the value of the euro to drop which often leads to lower oil prices. In addition, U.S. oil stockpiles jumped to a two-month high and output is at its highest level in 17 years, according to the Energy Department. At the same time, demand for gasoline has dropped 6.2 percent since August.
A barrel of oil settled Friday at $90.05 on the New York Mercantile Exchange--$1.81 less than the week prior.
The national average price of regular unleaded gasoline is $3.68, 11 cents less than last week. Florida’s average of $3.64 fell 8 cents and Tennessee’s average of $3.44 dropped 11 cents from last week. Georgia’s average price of $3.54 decreased 9 cents from last week, respectively.
Link: AAA Fuel Gauge Report
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