Fuel price brief
Last week, the International Energy Agency (IEA) announces the release of 60 million barrels of oil into the market. The U.S. Strategic Petroleum Reserve will provide 30 million barrels, while the remaining barrels will come from other countries. The decision was made after OPEC failed to come to any agreement at its June 8, meeting to increase production quotas to help alleviate high oil prices and make up for the loss of Libyan sweet crude.
Before the IEA made the announcement, oil prices were dropping as a result of slowed economic growth, both nationally and internationally, and Europe’s debt issues. Followed with the release of oil reserves, crude prices fell Friday to settle at $91.16 a barrel on the New York Mercantile Exchange, $1.85 less than the week before.
The national average price of unleaded regular gasoline is $3.57 a gallon, eight cents less than the week before. Floirda’s average price of $3.54 and Tennessee’s average price of $3.40 both reflect a five-cent decrease from the week before. Georgia’s average price of $3.50 reflects a six-cent decrease from the week before.
Current and past price averages:
National: Current – $3.575 Week ago – $3.650 Month ago – $3.809 Year ago $2.753
Florida: Current – $3.541 Week ago – $3.598 Month ago – $3.761 Year ago – $2.696
Source: AAA Auto Club South
Fuel price brief
Oil prices fell below $95 a barrel last week at the U.S. and international economic outlook was less than optimistic. Crude oil settled Friday at $93.01 a barrel on the New York Mercantile exchange, $6.28 less that last week. The International Monetary Fund cut the U.S. economic growth outlook to 2.5 percent this year, from the projected 2.7 percent based on a slow economic recovery and poor job market.
Consumer sentiment in the U.S. also fell to 71.8 in June from 74.3, according to a Thomson Reuters report. U.S. stockpiles of crude oil rose to the highest level in almost 30 years in the month of May with a total of approximately 367 million barrels. The European debit crisis continues to push oil prices below $100 amid concern the global economic recovery will remain at a reduced pace that initially expected and lower global fuel demand.
The national average price of unleaded regular gasoline is $3.65 a gallon, five cents less that last week. Florida’s average price of $3.59 and Tennessee’s average price of $3.45 reflect a four cent decrease from last week. Georgia’s average price of $3.56 reflects a two cent decrease from last week.
Current and past averages for regular unleaded gasoline:
National: Current $3.708 – Week ago $3.775 – Month ago $3.982 – Year ago $2.702
Florida: Current $3.633 – Week ago $3.685 – Month ago $3.945 – Year ago $2.649
Source: AAA Auto Club South