Gas prices predicted to decline
Published: Monday, January 14, 2008 at 7:15 a.m.
Last Modified: Monday, January 14, 2008 at 7:15 a.m.
The apparent economic downturn in the United States may have an upside for
Officials at AAA Auto Club South are predicting gas prices will begin to
drop because the slowing economy will cut demand for crude oil. Declining
prices were evident nationally over the last seven days as the average
price of a gallon of self-serve regular fell by three-cents a gallon to
$3.07. Average prices in Florida fell by a penny to $3.14 a gallon.
Over the past week, crude oil prices fell five percent. In the auto club's
weekly news release about gas prices, officials noted that the New York
based securities firm Goldman Sachs had determined the U.S., China and
Japan collectively consume 40-percent of the world's oil and the U.S. and
Japan are at risk of recession.
Any price declines may be short-term, though.
"While fuel prices historically decline at this time of year, production of
summer blended fuel is a process from February through May that always
pushes fuel prices sharply higher," said Randy Bly, director of community
relations for the auto club.
Regular, unleaded, self-serve fuel prices in Florida
Week Ago $3.158
Month Ago $3.061
Year Ago $2.308
Source: AAA Auto Club
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