Florida – The American Automobile Association (AAA) says that gas prices in Florida seem to have reached their peak for the first half of the year at $2.47 on April 21.
The Energy Information Administration’s data on gasoline supply has revealed a ‘gas glut’ which is expected to drive prices down. For the last 5 days, gas prices in Florida have declined 3 cents to reach the current average price of $2.41, 2 cents down from last week and a half cent down from yesterday, April 26.
A month ago, gas prices in Florida were $2.293, and a year ago they were $2.188. The highest gas price in Florida ever recorded was on July 17, 2008, at $4.079.
(State and National gas price averaged courtesy of AAA)
“This is a nice surprise for motorists who were initially poised to see $2.70 gasoline by the summertime,” says AAA – The Auto Club Group spokesman, Mark Jenkins. “Instead, oil producers came out of maintenance season with a vengeance, changing the narrative for the coming months. U.S. refineries are running at their highest capacity on record. If that continues, gasoline will be produced at a much higher rate than there is an appetite for, since demand remains muted compared to last year.”
Today, gas prices dropped 16% in the futures market with barrels costing $48.50, dropping $1.25 from yesterday. Barrels are expected to stay at this price through the end of the year.
“Based on current fundamentals, oil prices could hover around $50 a barrel and gas prices would still drop 5-10 cents in the near term,” says Jenkins.
Copyright Southern Stone Communications 2017.