Gas prices tick down again, but storm impacts linger
25 October, 2017, 00:57 | Author: Franklin Nunez
The average price in Florida was $2.42 per gallon on Monday, having dropped 38 consecutive days according to the American Automobile Association. "Perhaps even more wild is that the national average has now remained under $3 per gallon for almost three years". The average price for a gallon of gas in California was $3.03 on Tuesday.
The price for Brent crude oil, the global benchmark, is up 11 percent since the end of August, when Hurricane Harvey hit the southern Texas coast.
BOISE National average gas prices have started the slow march toward anticipated seasonal lows, and Idaho prices are beginning to follow suit, says AAA.
The hurricane knocked out about a quarter of the nation's oil refining capacity, causing gas prices to climb almost 20 percent. In Mississippi, the statewide average peaked at $2.49 about two weeks after the hurricane and have been declining since, Redman said.
The national average has only dropped 1.6 cents in the last week. "While recent actions from OPEC may cause oil prices to hold above the key $50 per barrel level, there is no threat of a quick return to the $3 per gallon days".
Since the peak, prices have dropped 40 cents a gallon, or about a penny a day.
That results in rocky gas prices in the Orlando area. Reduced demand and the conversion to cheaper-to- produce winter-blend fuel are starting to apply downward pressure on pump prices throughout the state. Meanwhile, oil prices gained nearly a dollar last week after the EIA reported a 5.7 million barrel decline in oil supply and a 1 million barrel drop in production.
Now that gasoline production, shipments and inventories are being restored, prices have retreated 33 cents, though they've come down much slower than they went up.
While not quite back to pre-Hurricane Harvey levels, gas prices continue to work their way down locally and around the country. The national average has remained under $3 per gallon for almost three years.
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In fact, the national average may continue to decline for a few weeks before leveling off as gasoline inventories continue to heal after Harvey.
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