JACKSONVILLE, Fla. – Low oil prices should deliver cheaper prices at the pump this week. The average price for a gallon of gasoline is $2.02 nationwide, $2.04 in Florida, $1.94 in Georgia, and $1.81 in Tennessee.
The national average is at its lowest price since 2009 and is near the $2 per gallon threshold. Retail averages have fallen for 32 of the past 36 days and today’s price of $2.015 per gallon is down 2 cents since last week. Drivers continue to benefit from noticeable yearly savings and are saving 57 cents per gallon versus this same date last year.
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"Global oil prices hit their lowest levels since 2009 over the past week and the sentiment that prices will remain lower for longer is gaining traction," said Mark Jenkins, spokesman, AAA - The Auto Club Group. "The International Energy Agency’s prediction that the global supply glut will continue, combined with the expectation that global oil demand will slow in 2016, helped send prices lower last week."
On Friday, WTI settled at $35.62 a barrel on the NYMEX - the lowest daily settlement in six years (February 18, 2009). The weekly average of $36.94 was the lowest since the week of February 13, 2009.
According to the Department of Energy, U.S. oil production remains slightly elevated year-over-year, despite more than a 60 percent decline in the total U.S. oil rig count since October 2014. However, the agency is also forecasting that non-OPEC production will experience an annual decline in 2016 for the first time since 2008. This shift is attributed to expectations that supply will continue to outpace demand both domestically and globally.
"Georgia and Tennessee state averages are already below $2 a gallon, and these low oil prices should be the catalyst to send Florida's state average below the same benchmark," Jenkins said.
If the Florida average falls below $2 a gallon, it would be the first time since March 22, 2009. The sunshine state would join 25 others with averages below $2, including Georgia, whose average fell below $2 a gallon on November 24, and Tennessee whose average slipped under $2 on November 14.