JACKSONVILLE, Fla. – Gas prices dipped last week after the price of oil fell to its lowest level in 3 months. West Texas Intermediate settled below $51 a barrel for the first time since April and gas prices are responding in kind.
"The price of oil continues to be the main driver of gas prices, said Mark Jenkins, AAA spokesman. "As oil gets cheaper, it becomes less expensive to produce gasoline, and those savings are reflected in prices at the pump."
Three weeks ago, oil settled as high as $59.47 a barrel. The peak price this year was $61.43 in June. Last week, a barrel of oil sunk to $50.89 – the lowest settlement since April 9, when gas prices were 20 cents cheaper.
The price of oil has been moving lower since July 1, due to a variety of factors including ongoing concerns over a glut of crude supplies, a stronger U.S. dollar, and the Iranian Nuclear Deal. The agreement is expected to eventually result in the addition of millions of barrels of oil to the world's oil markets, but some analysts say that may take several months.
Gas prices have been on the downward trend since peaking in mid-June. Florida gas prices have declined 30 out of the last 31 days. Georgia prices have fallen 28 of the last 34 days. The highest state average prices this year were $2.72 in Florida and Georgia, and $2.58 in Tennessee.