Floridians are finding the lowest pump prices since April. The state average price for a gallon of regular unleaded is $2.64; 28 cents less than this year’s high, and 25 cents more than this time last year.
Gas prices continued their downward trek last week, declining another 6 cents. The state average declined for the 26th consecutive day on Sunday, for a total discount of 18 cents.
Most expensive gas price averages: Panama City ($2.87), Crestview-Fort Walton Beach ($2.79) and West Palm Beach-Boca Raton ($2.78). Least expensive gas price averages: Tampa-St. Petersburg-Clearwater ($2.52), Orlando ($2.54) and Punta Gorda ($2.56).
Why are crude prices falling?
Crude oil prices are hovering near 7-month lows. On Friday, WTI settled at $63.14 per barrel, nearly $4.50/b less than the week before, and the lowest daily settlement since April 6, 2018. The weekly average price for U.S. crude has declined the past four consecutive weeks. Before then, crude prices faced upward pressure amid growing concerns that U.S. sanctions against Iranian crude would cause a global supply shortage. However, those concerns are being quelled by increased production by countries like the U.S., Saudi Arabia, and Russia.
Crude production in the U.S., Saudi Arabia and Russia all remain strong. U.S. oil inventories rose for the sixth consecutive week, according to weekly data from the Energy Information Administration. Domestic supplies rose 3.2 million barrels from the week before. Meanwhile, gasoline inventories dropped by 3.2 million barrels. Meanwhile, OPEC production levels for October reportedly reached the highest output levels since 2016 as some members boosted production in preparation for Iran sanctions.
AAA-The Auto Club Group