Prices at the pump rose slightly this week. The national average for a gallon of regular unleaded gasoline is $2.279 today, up nearly a penny from last week, down 8 cents from a month ago and an increase of 58 cents over last year.
"Low demand is keeping downward pressure on gasoline prices," said Josh Carrasco, spokesman, AAA - The Auto Club Group. "OPEC's cuts are being offset by increases in domestic oil production, high gasoline and oil inventories and a drop in gasoline demand. Gas prices should remain steady in the near-term before taking their seasonal upswing as we head into the spring."
WTI crude closed at $53.86 on the NYMEX on Friday, up only 3 cents from last week's close, but $12.89 above one year ago. Increased U.S. production with the potential for more has kept a ceiling on oil prices and are counteracting the impact of efforts by OPEC and non-OPEC countries to cut production and rebalance global oil supply. U.S crude oil production is forecast to average 9.0 million b/d in 2017 and 9.5 million b/d in 2018.
The U.S. Energy Information Administration’s (EIA) latest weekly estimates of U.S. gasoline demand shows that January 2017 figures are down 6 percent from January 2016 and are at their lowest standing for the first month of the year since 2012. The EIA forecasts gas prices to average $2.39 per gallon in 2017 and $2.44 per gallon in 2018. The EIA also expects West Texas Intermediate (WTI) crude oil prices to average about $54 per barrel in 2017.
Regional Gas Prices
Florida gas prices rose for the first time on Saturday, snapping a streak of 36 consecutive days of declines, the longest streak since November. During the streak gas prices fell 14 cents. The average price of a gallon of regular unleaded gasoline is $2.278 which nearly one cent cheaper than one week ago, 12 cents lower than a month ago and 51 cents more expensive than last year. The lowest regional averages in the state are in Orlando ($2.193), Tampa-St. Petersburg-Clearwater ($2.193), and Jacksonville ($2.201).
In Georgia motorists saw very little change in the price at the pump. The average price of a gallon of regular unleaded gasoline is $2.180 which is the same as one week ago, 7 cents lower than a month ago and 52 cents more expensive than last year. The lowest regional averages in the state are in Augusta ($2.105), Macon ($2.108) and Albany ($2.110).
Tennessee gas prices have been trending downwards for 5 consecutive days, falling fractions of a penny during that time. The average price of a gallon of regular unleaded gasoline is $2.053 which is a cent cheaper than one week ago, 9 cents lower than a month ago and 53 cents more expensive than last year. The lowest regional averages in the state are in Chattanooga ($1.988), Knoxville ($2.002) and Clarksville-Hopkinsville ($2.031).
