Florida gas prices may have hit their peak, at least for the first half of the year. New supply data from the Energy Information Administration stoked concerns of a gasoline glut, pushing the wholesale market to seven-week lows.
Florida gas prices declined for the fifth consecutive day today, for a total of 3 cents. The current average of $2.44 is a half cent less than yesterday and 2 cents less than last week. Florida gas prices peaked last year at $2.41 on December 31. So far this year, the highest price was $2.47 on April 21.
"This is a nice surprise for motorists who were initially poised to see $2.70 gasoline by the summertime," said Mark Jenkins, spokesman, AAA - The Auto Club Group. "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. 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."
Wholesale gasoline prices dropped 16 percent in the futures market today. Oil prices are also on the decline. WTI traded below $48.50 a barrel on the NYMEX before noon - falling nearly $1.25 from yesterday's settlement. Analysts believe oil will likely trade at the upper end of the $40 to the low to mid $50s through the rest of the year, keeping the cost of producing gasoline low.
Motorists can find the lowest gas prices in their area by downloading the free AAA Mobile app.
AAA updates fuel price averages daily at www.GasPrices.AAA.com. Every day up to 120,000 stations are surveyed based on credit card swipes and direct feeds in cooperation with the Oil Price Information Service (OPIS) and Wright Express for unmatched statistical reliability. All average retail prices in this report are for a gallon of regular, unleaded gasoline.
About The Auto Club Group
The Auto Club Group (ACG) is the second largest AAA club in North America. ACG and its affiliates provide membership, insurance, financial services and travel offerings to over 9 million members across eleven states and two U.S. territories including Florida.