AAA: Gas Prices in Florida Drop Slightly After Reports that Oil Production Will Increase

AAA released a report this week showing gas prices moved slightly down across Florida in recent days.

The average gallon of gas in Florida cost $2.99 on Sunday, down two cents from the start of last. Across the nation, the average gallon of gas cost $3.17 on Sunday.

“Crude oil prices declined last week, which has enabled gasoline prices to weaken,” said Mark Jenkins, a spokesman for AAA and the Auto Club Group. “The crude futures market is digesting the recent news that OPEC and its oil producing allies plan to gradually increase oil production this year. Initial reports led to lower prices last week, but it’s unclear where the crude market will go from here. For now, drivers can enjoy a break from rising prices at the pump, with the possibility that retail prices slip a few more cents this week.”

“Gasoline prices have increased a total of 82 cents this year. The main driver behind the jump at the pump has been the price of crude. Domestic oil prices have increased as much as 57 percent since January, as global crude oil supplies struggled to keep up with rising demand,” AAA noted. “Last week, the price for domestic crude reached a new 2021 high of $75.25 per barrel. That was the highest daily average price since October 2018. However, that price quickly disappeared by mid-week, falling a total of 4 percent by Friday, to finish the week at $71.81 per barrel. The decline was in reaction to news that OPEC and its allies plan to gradually return 5.8 million barrels a day of production, since making deep cuts last year. According to our partners at OPIS, the increase is not expected to totally ease tightness in fuel markets this summer, as demand rises amid a re-opening of economies hobbled by the COVID-19 pandemic.”

 

“While this news may not mean significant relief at the pump, it could help prevent prices from going much higher,” Jenkins said.

 

Panama City had the most expensive gas in the state with an average of $3.15 a gallon followed by the West Palm Beach-Boca Raton area at $3.14 a gallon and Tallahassee at $3.07 a gallon.

 

Punta Gorda had the least expensive gas in the state at $2.89 a gallon followed by Jacksonville and Orlando at $2.94 a gallon, Fort Myers at $2.95 a gallon and the Tampa Bay market at $2.96 a gallon.

 

 

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