Fuel Price Brief for the Week of November 30, 2014

FUEL PRICE BRIEF Florida & Georgia Contact Josh Carrasco, spokesman, AAA - The Auto Club Group, office: (813) 288-7982, cell: (607) 592-0920, JCarrasco@AAASouth.com Tennessee Contact Don Lindsey, TN Public Affairs Director, AAA - The Auto Club Group, office: 865-862-9250, cell: 865-250-0914, DLindsey@AAASouth.com Visit the AAA Newsroom

AAA: SOME U.S. DRIVERS MAY SEE $2 GAS FOR THE HOLIDAYS
OPEC decision causes oil prices to plunge 
 

TAMPA, Fla. (November 30, 2014) — U.S. motorists in southern and mid-west states could see a handful of gas stations hit the $2 a gallon mark just in time for the Christmas holiday season. OPEC's failure to cut oil production could cause gas prices to fall by as much as 20 cents. The national average has fallen for 67 consecutive days the longest streak since 2008. The streak of declines is 58 days in Florida, 59 in Georgia, and 16 in Tennessee.

"Drivers in southeastern states, such as Tennessee, may see a select few stations selling gas at or below $2 in the coming weeks," said Josh Carrasco, spokesman, AAA - The Auto Club Group. "The chances of gasoline averaging $2 per gallon are highly unlikely. Oil prices would have to drop another $25 to $30 a barrel before we reach the $2 threshold."

The Organization of Petroleum Exporting Countries (OPEC), which controls about 40 percent of the world's oil, decided to maintain its crude oil output of 30 million barrels per day at its Thanksgiving meeting in Vienna. The decision to not cut production sent oil prices into a nose dive. West Texas Intermediate (WTI) crude oil, the U.S. benchmark, fell $7.54 on Friday to $66.15 per barrel, the lowest close in five years. 

"Oil production is outpacing demand," said Carrasco. "The U.S. is the difference maker. Domestically oil companies are producing over 9 million barrels a day, which is placing downward pressure on gasoline prices. Motorists should expect gas prices to fall throughout the holiday season."

The national average for a gallon of regular unleaded gasoline ($2.78) is 4 cents cheaper than last week, 23 cents cheaper than a month ago, and 49 cents cheaper than this time last year. Florida's average price ($2.77) is 5 cents cheaper than a week ago, 22 cents cheaper than last month, and 69 cents cheaper than a year ago. The average price in Georgia ($2.69) is 6 cents cheaper than last week, 21 cents cheaper than a month ago, and 57 cents cheaper than this time last year. Tennessee's average of $2.57 is 4 cents cheaper than last week, 19 cents cheaper than a month ago, and 59 cents cheaper than this time last year.

CURRENT AND PAST PRICE AVERAGES 

Regular Unleaded Gasoline