Gas prices hit reverse
Written by Scott Blake on May 14, 2014
After hitting a spring peak, gasoline prices have been on the decline, and analysts say prices are likely to continue falling into the summer.
The average price in Florida for regular unleaded dipped Tuesday to $3.657 a gallon – down more than 4 cents in the past week. Tuesday also marked the 20th consecutive day that gas prices had fallen in Florida, AAA found.
Miami has seen a slightly lesser decrease. Local prices averaged $3.712 a gallon for regular unleaded Tuesday, down more than 3 cents from a week earlier and down more than 9 cents from a month ago.
“Motorists are finally getting that steady break in gas prices that we were anticipating,” said AAA spokesman Mark Jenkins. “The discount at the pump is expected to continue, as prices are forecast to be in line with last year’s levels by Memorial Day weekend.”
Mark DeHaan, senior petroleum analyst at GasBuddy.com, agreed.
“The national average peaked in the closing days of April and has moved down a few cents a gallon, and we’ll likely continue to see prices dropping as we approach Memorial Day,” he said. “The national average by Memorial Day will be between 5 and 10 cents per gallon lower than today.”
Gas prices nationwide have been falling because of record supplies. The federal Energy Information Administration estimates total US crude oil production in April hit its highest monthly average since March 1988.
The administration forecasts the national average price for May to be $3.72 a gallon for regular unleaded. It also forecasts that monthly average will drop 21 cents by September.
“This year,” Mr. Jenkins said, “record US crude inventories should put downward pressure on gas prices all summer. As always, natural disasters or supply disruptions could change that.”