Nationwide, motorists continue to see a slow decline in prices at the pump this week. As of Sunday, the national average price for regular unleaded gasoline is $2.272 per gallon, which is fractions of a penny less than one week ago, nine cents less than one month ago and 51 cents more per gallon year-over-year.
"Increased domestic oil production and low seasonal demand continue to push gas prices lower," said Josh Carrasco, spokesman, AAA - The Auto Club Group. "Oil and gas inventories are above-average for this time of year, which should continue to keep downward pressure on pump prices in the short-term."
According to Energy Information Administration reports, crude inventories increased by 6.5 million barrels and gasoline inventories rose by 3.9 million barrels, which are historically above the norm for this time of year. Prices at the pump are expected to remain relatively stable to round out the winter. However, motorists should expect gasoline prices to increase in the spring as demand increases and refineries switch to summer-blend fuels. Industry analysts expect gas prices will likely rise to an average of $2.50 to $2.80 per gallon this spring. Nationally, the EIA expects gas prices to average $2.38 in 2017, which is 23 cents higher than the 2016 average.
Oil Prices
Oil prices inched higher this week as a result of reports that OPEC and non-OPEC countries are following through on their plans to reduce production. Crude oil posted gains on Friday following positive reports of OPEC’s January production cuts. According to a recent Reuters survey, OPEC oil production declined by 1 million barrels per day, to a total of 32.3 million barrels per day in January, suggesting the oil cartel obtained 80 percent its production cuts agreed to late last year. Traders will continue to keep an eye on OPEC’s production cuts and the response of U.S. companies. At the closing of Friday’s formal trading session on the NYMEX, WTI was up 29 cents to settle at $53.83 per barrel.
Regional Gas Prices
Florida gas prices have declined for 31 consecutive days, falling 13 cents during that time. The average price of a gallon of regular unleaded gasoline is $2.284 which is 3 cents cheaper than one week ago, 13 cents lower than a month ago and 47 cents more expensive than last year. The lowest regional averages in the state are in Tampa-St. Petersburg-Clearwater ($2.20), Orlando ($2.201) and Jacksonville ($2.223).
In Georgia, gas prices rose slightly on Friday snapping a 23 day streak of declines. The average price of a gallon of regular unleaded gasoline is $2.180 which is fractions of a cent higher than one week ago, 8 cents lower than a month ago and 46 cents more expensive than last year. The lowest regional averages in the state are in Albany ($2.081), Macon ($2.108) and Augusta ($2.122).
Tennessee gas prices have been trending downwards for 17 consecutive days, falling 6 cents during that time. The average price of a gallon of regular unleaded gasoline is $2.064 which is a cent cheaper than one week ago, 8 cents lower than a month ago and 48 cents more expensive than last year. The lowest regional averages in the state are in Chattanooga ($1.996), Knoxville ($2.01) and Clarksville-Hopkinsville ($2.04).
