14 November 2010
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FUEL PRICE BRIEF CONTACT: For your local media contact visit www.AAA.com/Media Jessica Brady, manager, AAA Public Relations, office: (813) 288-7294; cell: (813) 532-5327 |
PRICE OF CRUDE DROPS; CONSUMERS NOT IN THE CLEAR
TAMPA, Fla. (Nov. 14, 2010)—The price of crude oil dropped slightly last week and will keep retail prices from increasing further this week, but the decrease may be temporary. Crude oil decreased by $1.97 last week to settle Friday at $84.88 a barrel on the New York Mercantile Exchange.
The drop in price came after news announced China may drop interest rates and slow demand growth in the country. However, U.S. inventories of crude oil decreased by more than 3 million barrels last week, when they were forecast to increase by 1.5 million barrels. The dollar gained minimal strength last week only to decline further in value later in the week.
“We may start to see the price of crude oil react more to basic fundamentals of supply and demand as opposed to the value of the dollar,” said Jessica Brady, manager, AAA Public Relations. “Just because the price of crude dropped this week, doesn’t mean it will continue to drop, especially after news announcing demand has increased. Consumers may see a slight decrease in gas prices this week, but it will be minimal since it’s very likely oil prices will increase this week, only to move retail prices higher next week.”
The drop in price came after news announced China may drop interest rates and slow demand growth in the country. However, U.S. inventories of crude oil decreased by more than 3 million barrels last week, when they were forecast to increase by 1.5 million barrels. The dollar gained minimal strength last week only to decline further in value later in the week.
“We may start to see the price of crude oil react more to basic fundamentals of supply and demand as opposed to the value of the dollar,” said Jessica Brady, manager, AAA Public Relations. “Just because the price of crude dropped this week, doesn’t mean it will continue to drop, especially after news announcing demand has increased. Consumers may see a slight decrease in gas prices this week, but it will be minimal since it’s very likely oil prices will increase this week, only to move retail prices higher next week.”
The national average price of unleaded regular gasoline is $2.89 per gallon, 5 cents more than last week. Florida’s average price of $2.87 and Tennessee’s average price of $2.72 also reflect a 5-cent increase from last week. Georgia’s average price of $2.77 increased 6 cents from last week, respectively.
CURRENT AND PAST PRICE AVERAGES
Regular Unleaded Gasoline
Current Week Ago Month Ago Year Ago
National: $2.889 $2.848 $2.833 $2.639
Florida: $2.873 $2.824 $2.823 $2.689
Georgia: $2.776 $2.716 $2.716 $2.511
Tennessee: $2.723 $2.670 $2.685 $2.502
AAA’s Daily Fuel Gauge Report (fuelgaugereport.com) is updated each day and is the most comprehensive; reflecting actual prices from credit card transactions within the past 24 hours at two-thirds (100,000 stations) of the gasoline stations in the U.S. Its accuracy is unparalleled.
Next Fuel Price Brief: Sunday, November 21, 2010
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AAA Auto Club South, 1515 N West Shore Blvd, Tampa, FL 33607-4505 United States
AAA Auto Club South, 1515 N West Shore Blvd, Tampa, FL 33607-4505 United States