Gas Prices During “First 40 days of Summer” are Lowest in 12 years
TAMPA, Fla. — Gas prices increased for the first time in more than a month, according to AAA, whose data is collected from credit card swipes and direct feeds from 120,000 gas stations nationwide, in cooperation with OPIS and Wright Express.
“AAA forecasted the streak of gas price declines would come to an end last week,” said Mark Jenkins, spokesman, AAA The Auto Club Group. “What came as a bit of a surprise was the abrupt U-turn oil prices made after Independence Day. Instead of building on the momentum that pushed oil above $47 a barrel, the rally suddenly ran out of steam and oil stumbled back below $45. What that means to motorists is a short lived bump in prices at the pump.”
Gas prices for the first 40 days of summer (June 1 – July 10) have averaged the lowest in more than a decade. Prices this summer have averaged $2.26 in Florida, $2.18 in Tampa, and $2.15 in Georgia; which were the lowest in 12 years. Gas prices in Tennessee averaged $2.05 this summer, which is the lowest average for the 40-day period since 2004.
First 40 Days of Summer
(June 1 – July 10)
Oil Price Rally Runs Out of Steam
A shift in futures prices effectively brought the pump price plunge to a halt. Oil prices made steady gains, increasing from $42.53 to $47.07 over the course of 13 days, raising the cost of producing gasoline. However, prices at the pump barely had time to respond before oil slumped back below $45 on Wednesday. Despite bullish data from the EIA showing strong demand and reduced inventories, fuel production and supply levels remain especially high for this time of year, preventing oil prices from gaining solid footing.
Long term forecasts remain favorable for motorists. Many analysts are moving to the position that demand levels will not surpass last year’s record highs. Wells Fargo expects oil prices to remain below $50/b for the next 12 months, according to a statement made on Wednesday. That would put a ceiling on gas prices of about $2.50, if the forecast holds.
Gas Price Tools for Reporters/Consumers
- GasPrices.AAA.com – Daily national, state, and metro gas price averages.
- AAA Mobile app – Free app that shows current prices at a gas station near you.
(Based on weekly data provided by the EIA)