Holiday Pump Prices Set to Hit Two Year-Low, Prices Declined 50 Cents in Past Two Months
By Mark Jenkins, Spokesman AAA // December 18, 2018
Florida drivers saving an average of $7.50 on a full tank of Gas
BREVARD COUNTY, FLORIDA – Gas prices in Florida are declining again, after rising an average of three cents last week. On Sunday, gas prices averaged $2.30 per gallon, which is only 1.5 cents more than this time a week ago.
Florida drivers are now paying 21 cents per gallon less than they did two months ago, and 62 cents less than this year’s high.
Florida gas prices have declined a little more than 50 cents in the past two months and could drop another 10 cents before the end of the year.
Compared to last summer, Florida drivers are saving an average of $7.50 for a full tank of gasoline.
“Holiday travelers will have more jingle in their pockets after they fill-up the family vehicle,” said Mark Jenkins, spokesman, AAA – The Auto Club Group. “Prices are already at 2-year lows for the holidays and should slip even lower in the next two weeks.”
“Oil prices have been unable to gain significant upward momentum after OPEC announced plans to cut production.
The price of crude declined last week and should drop again this week because industry analysts are skeptical that OPEC’s plan could rebalance what is currently an oversupplied market.”
“If oil prices drop even further this week, that would reduce the cost of producing gasoline and allow additional price cuts at the pump.”
Gas prices across the U.S. declined another 4 cents last week and should drop even more through the end of the year, as futures prices are forecast to decline this week.
This is good news for the estimated 102.1 million Americans that are forecast to take a holiday road trip in the next two weeks.
Those drivers are saving $5.00-$15.00 on a full tank of gas compared to last summer and should find the lowest holiday gas prices in two years.
Click here to view AAA‘s state and metro gas price averages.
- Most expensive gas price averages: Panama City ($2.63), Miami ($2.47), and West Palm Beach – Boca Raton ($2.46)
- Least expensive gas price averages: The Villages ($2.17), Orlando ($2.20), Jacksonville ($2.20)
Prices for the holiday season are forecast to hit two-year lows, as AAA estimates 5.3 million Florida drivers will hit the holiday road. Florida gas prices averaged $2.44 per gallon on Christmas Day 2017 and $2.29 in 2016.
- Oil inventories declined a modest 1.2 million barrels (-0.1%). U.S. stocks remain 7 percent above the five year average for this time of year.
- Gasoline supplies grew nearly 1-percent, and are slightly above year-ago levels.
- Domestic oil production took a small step back, yet remains about 20 percent stronger than a year ago.
- Gasoline production took a giant leap as refiners ramp up for holiday travelers. Production rates are 8 percent stronger than a week ago, yet on par with this time last year.
- Implied gasoline demand rose nearly 2 percent, and is keeping pace with this time last year.
Oil Analysts Skeptical of OPEC Production Cuts
At the close of Friday’s formal trading session on the NYMEX, WTI decreased $1.38 per barrel to settle at $51.20/b. Oil prices have mostly fallen this week as market observers continue to worry that the global crude market is oversupplied.
Although the Organization of the Petroleum Exporting Countries (OPEC) and other oil producers, including Russia, agreed more than a week ago to reduce output by 1.2 million barrels per day at the beginning of 2019, crude prices will likely remain low until the production cuts begin.
However, with U.S. crude production near record highs, oil analysts are increasingly skeptical of whether OPEC’s production cuts would actually work, which is why oil prices declined last week. Our partners at OPIS predict crude prices to dip below $50 per barrel this week.
That would be $2/b below where prices were trading on Sunday afternoon. So far, the price of crude has yet to settle below $50/b all year.
The lowest daily settlement of WTI this year was $50.29/b on November 29. Crude prices account for about 50 percent of the price of gasoline. Because of this, for every dollar oil prices shift, gas prices follow by about 2.5 cents.
Gas Price Tools
- GasPrices.AAA.com – Daily national, state, and metro gas price averages
- AAA Mobile app – Free app that compares gas prices near you
- Gas Cost Calculator – Determine how much gasoline will cost on your next road trip
CURRENT AND PAST PRICE AVERAGES
|Sunday||Saturday||Week Ago||Month Ago||One Year Ago||2018 High||Record High|
|National||$2.378||$2.383||$2.423||$2.641||$2.434||$2.97 (5/26/2018)||$4.11 (7/17/2008)|
|Florida||$2.295||$2.301||$2.281||$2.510||$2.381||$2.92 (5/25/2018)||$4.08 (7/17/2008)|
|Georgia||$2.184||$2.188||$2.216||$2.495||$2.297||$2.84 (5/27/2018)||$4.16 (9/15/2008)|
|Click here to view current gasoline price averages|
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