TAMPA, Fla. -- After gas prices jumped on the announcement of the government reopen, bearish fundamentals pushed them back down.
U.S. inventories rose 5.25 million barrels last week to 381 million barrels, the most since June, according to the Energy Information Administration. Current production is up about 6 percent as well. Talks to suspend sanctions against Iran may increase global oil supply and also place downward pressure on fuel prices. The current national average of $3.29 is the lowest daily average so far this month.
"Gas prices will likely move lower this week and may continue the downward trend into November," said Jessica Brady, AAA spokeswoman, The Auto Club Group. "Supply and demand numbers are bearish and the easing of sanctions against Iran will also push prices lower in the coming weeks. Overall, pump prices should be pretty affordable come the Thanksgiving holiday weekend."
The cost for a barrel of oil closed last Friday at $97.85 on the NYMEX - $2.96 less than the week prior.
The national average price of regular unleaded gasoline is $3.29, 6 cents less than last week. Florida's average of $3.28 dropped 5 cents, while Georgia's average of $3.26 fell 4 cents. Tennessee's average of $3.14 also decreased 4 cents from last week.