U.S. now the world's leading oil producer

Published: Monday, July 7, 2014 at 10:57 a.m.
Last Modified: Monday, July 7, 2014 at 10:57 a.m.

The United States surpassed Saudi Arabia and Russia to become the world's biggest oil producer this year and is projected to remain the top producer because domestic output is forecast to increase and production growth outside the U.S. has been lower than anticipated, according to a report from the Bank of America Corp.


Regular Unleaded Gasoline

Current: $3.655
Week Ago: $3.676
Month Ago: $3.656
Year Ago: $3.474

Current: $3.592
Week Ago: $3.620
Month Ago: $3.582
Year Ago: $3.425

Current: $3.558
Week Ago: $3.593
Month Ago: $3.562
Year Ago: $3.335

“The shale boom in Texas and North Dakota continues to spur domestic production growth," Mark Jenkins, spokesman for AAA - The Auto Club Group, said on Monday.

"Increasing domestic production puts a cap on oil prices, which keeps gas prices affordable,'' he said. “Fortunately, the price of oil is trending down as fears of a supply disruption in Iraq are dissipating and news that Libya will soon resume shipping oil at full capacity."

The price for a barrel of oil slipped $1.68 last week, closing at $104.06 on the NYMEX on Friday. The national average price for a gallon of gasoline is 2 cents cheaper than last week, with the average price in Florida down 3 cents and 4 cents cheaper in Georgia compared to last week.

"Lower oil prices means gasoline should continue drifting down this week," Jenkins said. "However, prices typically become volatile in the mid to late summer months as we move into hurricane season.''

In Gainesville, the average price of a gallon of regular on Monday was $3.67, down $3.69 from last week, according to the website GasBuddy.com. In Ocala, the price was $3.60, down 3 cents from last week.

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