Gainesville gas prices remain the third highest in Georgia, but statewide prices are declining.
That's according to AAA's weekly fuel price report. It shows that the state saw a three cent decline to $2.79. Gainesville's above average price of $2.80 was only beat by Atlanta at $2.84 and Athens at $2.83.
The state average is the lowest price in 20 days. "Gas prices could drop another 5 cents this week, unless the market suddenly shifts course," said AAA spokesman Mark Jenkins. "Prices at the pump are still adjusting to the recent drop in oil and wholesale gasoline, due to the potential of increased crude output from OPEC. However, there is still volatility in the market, and pump prices could move higher if OPEC decides against easing production cuts at a meeting later this month."
Production in Saudi Arabia increased last month by 100,000 barrels a day after output was reduced by nearly two years. They, along with other OPEC and non-OPEC oil producers were in an agreement to cut output in hopes of raising prices - that worked, tightening the oil market and crude prices reached four year highs.
However, there are growing concerns that strong demand would soon outpace supplies, and economies will suffer as a result of the higher prices. Because of this, the participants in this agreement are set to reconvene on June 22 to discuss increasing output.
U.S. crude prices settled at $65.74 per barrel on Friday - a 7 cent decline from the week before, and $6.50 less than this year's high.