Gas prices: Tug of war between supply and OPEC
Published: Monday, January 26, 2009 at 7:26 a.m.
Last Modified: Monday, January 26, 2009 at 7:26 a.m.
The strongest factor in dueling market forces is expected to determine the direction of gas prices this week.
Average prices for regular unleaded gas in Florida
Week ago $1.887
Month ago $1.828
Year ago $3.147
Source: AAA Auto Club South
According to AAA Auto Club South, the factors in play include crude oil prices that rose by about $10 a barrel over the past week due to OPEC production cuts, abundant supplies of oil and gas nationwide, and weak consumer demand internationally.
"Logic tells us that retail prices should decline until either supply diminishes or demand strengthens, but the oil industry seems to have ignored logic for most of January," said Gregg Laskoski, managing director of public relations for AAA Auto Club South.
In his weekly news release about gas prices, Laskoski said prices at the pump declined slightly on Friday, the first declines since New Year's Day.
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