Oil prices rose $3 last week, pushing retail gas prices 3-4 cents higher in Florida, Georgia, and Tennessee, according to Sunday's fuel price report from AAA.
This snapped a 62-day streak of gas price declines in Florida, for a total discount of 30 cents. Current state averages remain 5-10 cents less than a month ago, 35-40 cents less than a year ago, and $1.30-$1.50 less than two years ago.
More expensive oil prices caused wholesale gas prices to rise 6 cents, directly leading to the increases at the pump," said Mark Jenkins, spokesman, AAA - The Auto Club Group. "However, wholesale prices slipped 3 cents mid-week, allowing retail prices to stabilize over the weekend. Gas prices are likely to remain volatile through the rest of the month, but stay low through the rest of the year."
Gas prices remain at the lowest level for this time of year since 2004. Motorists currently save an average of $20 for a full tank of gas - compared to this time two years ago - when pump prices averaged $3.47 nationwide.
The weekly average for a barrel of WTI crude oil ($43.10) is $2.27 more than a week ago, and the highest in three weeks. Oil prices rose after the International Energy Agency forecast crude markets would tighten in the second half of 2016. According to the EIA, the global oversupply of crude will clear out during the second half of the year. This is due to deep output cuts by producer outside of OPEC, and healthy global demand for crude oil. Also putting upward pressure on oil prices is news that OPEC members and non-members agreed to an informal meeting in September to discuss the market situation and possible action to stabilize prices. Analysts believe oil prices could reach as high as $45 in the near term.
