Florida gas prices should go even lower this week, potentially sinking below $2 per gallon in some markets. Crude and gasoline futures prices were sent into a tail-spin overnight, hitting lows that haven’t been seen since 2016.
Just two weeks ago, the price of crude traded for more than $53 per barrel. Sunday night, it was around $33/b. Crude prices have been reeling during the past two weeks, as coronavirus concerns have led to lower global demand for jet fuel and gasoline.
OPEC and its allies met on Friday in hopes of cutting oil production to offset the dipping demand. Not only did they not make a deal, it now appears that all parties will not extend their existing production cut agreement. What this means is even more oil hitting the market at a time that demand is falling. By the end of Friday, crude had lost more than 20 percent in value, declining a total of $12 per barrel in two weeks.
Late Sunday night, fuel markets were dealt another heavy blow. Crude oil (WTI) plummeted an additional 20 percent on the expectation that Saudi Arabia plans to boost production and begin a price war with Russia. As of this writing Sunday night, WTI crude was trading for around $33 a barrel, after briefly hitting $29.50. Gasoline futures also lost significant value on the stock market, dropping more than 20 cents per gallon (as of press time).
“At the rate fuel prices are falling on the stock market, Florida drivers could easily begin seeing sub-$2 gasoline this week,” said Mark Jenkins, spokesman, AAA – The Auto Club Group. “The only potential upward pressure on pump prices is spring maintenance season. If the state average eventually drops below $2 per gallon, it would be the first time in four years. How long this holds or how low prices go will rely on where stock market prices go from here.”
Sunday’s state average of $2.28 per gallon is 7 cents per gallon less than a week ago, and the lowest daily average price since February 2019. The state average has fallen 11 cents in the past 11 days. Drivers are currently paying 19 cents per gallon less than this time last year.
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Gas Price Survey Methodology
AAA updates fuel price averages daily at www.GasPrices.AAA.com. Every day up to 130,000 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.