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AAA: More Oil Supply Should Lead To Gas Price Drop

By on May 29, 2018 in WNDB News

Daytona Beach, FL – If you’re sick of the high prices at the gas pump, some relief is coming your way soon.

AAA expects local gas prices to drop in the short term due in part to Russian and Saudi Arabian interest in increasing crude oil supply worldwide.

Futures prices for oil and gas have dropped below $70 a barrel since late last week after officials for both countries – among the largest oil producers in the world – talked about raising output by nearly one million barrels per day as a response to potential output cuts from Venezuela and Iran, according to AAA spokesman Mark Jenkins.

“This news couldn’t come at a better time as motorists roll into the summer driving season,” Jenkins added. “The drop in crude should amount to a discount of at least 10 cents at the pump in the short term.”

Having said that, Jenkins also said don’t expect the downward turn to happen overnight.

“Retailers are usually slow to lower prices, especially those who bought shipments of gasoline when prices were at a premium,” Jenkins noted.

In the Daytona Beach area, the current average for a gallon of regular unleaded is $2.90, just a cent under the state average. It’s also an eight-cent jump from a week ago.

The Florida average on Memorial Day was $2.91, the most expensive for the holiday since 2014.

Sunshine State drivers are, on average, paying 60 cents more per gallon than a year ago, according to AAA.

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