AAA: OPEC Announces Production Cut, Pump Price Plunge Begins to Stall in the South

By  //  December 11, 2018

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AAA Launches Fuel Rewards Program for Members

Increased crude prices will likely lead to higher gas prices, given that approximately 50 percent of the cost motorists pay at the pump is based on the cost of crude used to make gasoline.

BREVARD COUNTY, FLORIDA  The discount at the pump is beginning to slow down in some southern states. Gas prices in Florida declined fractions of a penny on Sunday, after declining 1-2 cents a day for the past seven weeks.

Average prices followed the same trend in most major metro markets around the state.

“The plunge at the pump could soon come to an end,” said Mark Jenkins, spokesman, AAA – The Auto Club Group. “Pump prices are close to catching up with the recent crude price plunge.”

“However, oil prices are beginning to increase, after OPEC announced a production cut agreement on Friday. Regardless, drivers should continue to enjoy low gas prices through the end of the year, unless oil prices suddenly spike.”

Sunday’s state average of $2.28 per gallon is 6 cents less than a week ago, 30 cents less than last month, and 13 cents less than this time last year.

The average price in Florida has declined the past 61 consecutive days for a total discount of 54 cents.

Click here to view AAA’s state and metro gas price averages.

  • Most expensive gas price averages: Panama City ($2.66), Miami ($2.51), and Crestview-Fort Walton Beach ($2.47)
  • Least expensive gas price averages: Tampa Bay ($2.13), Orlando ($2.14), and Jacksonville ($2.14)

Sunday’s national average price of $2.42 per gallon is 5 cents less than a week ago, almost 30 cents less than last month, and 4 cents less than this time last year. The national average has declined 60 consecutive days for a total discount of 49 cents.

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Oil Prices Edge Higher on OPEC Production Cut Agreement

Increased crude prices will likely lead to higher gas prices, given that approximately 50 percent of the cost motorists pay at the pump is based on the cost of crude used to make gasoline.

At the close of Friday’s formal trading session on the NYMEX, WTI increased $1.12 to settle at $52.61 per barrel.

Oil prices rallied Friday after the Organization for Petroleum Exporting Countries (OPEC) announced that beginning in January 2019, the cartel – alongside non-OPEC members, including Russia – will reduce combined crude oil production by 1.2 million b/d.

The cut will be in place for six months and will use October 2018 as a baseline, a time when OPEC and Russia had less crude output than in November. With the announcement, crude prices will likely increase in 2019 ahead of the higher demand driving season next summer.

Increased crude prices will likely lead to higher gas prices, given that approximately 50 percent of the cost motorists pay at the pump is based on the cost of crude used to make gasoline.

In related news, EIA’s report for the week ending on November 30 revealed that crude inventories decreased by 7.3 million bbl after 10 weeks of consecutive growth.

Total domestic crude inventories now sit at 443.2 million bbl, which is approximately 5 million bbl less than their level at this time last year. Declining inventories contributed to the increase in crude prices this week, and if the trend continues, prices could climb further.

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AAA Launches Fuel Rewards Program for Members

ABOVE VIDEO: AAA members can now save even more money at the pump, thanks to a new Fuel Rewards program with Shell.

AAA members can now save even more money at the pump, thanks to a new Fuel Rewards program with Shell.

Members who sign-up at AAA.com/Shell, can save up to five cents per gallon (on up to 20 gallons) through December 31, 2019, when filling up at participating Shell-branded stations across the United States.

Members who register for the first time will save an additional 25 cents per gallon (on up to 20 gallons) on their first fill-up through January 31, 2019.

Before providing payment when filling up, members will see prices roll back at the pump after they enter their Fuel Rewards Alternative ID, which is typically a phone number.

ABOVE VIDEO: Rediscover the updated AAA Mobile App. Try out the new features including a customized dashboard that offers easier access to your AAA info, discounts and much more. 

Gas Price Tools

                         CURRENT AND PAST PRICE AVERAGES

                                    Regular Unleaded Gasoline

Sunday Saturday Week Ago Month Ago One Year Ago 2018 Low 2018 High Record High
National $2.423 $2.427 $2.467 $2.712 $2.465 $2.49 $2.97 $4.11 
Florida $2.281 $2.284 $2.339 $2.583 $2.412 $2.44   $2.92 $4.08 
Georgia $2.216 $2.221 $2.288 $2.579 $2.326 $2.35  $2.84 ( $4.16 
Click here to view current gasoline price averages

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