TAMPA, Fla. — Last week, motorists enjoyed the lowest Thanksgiving gas prices in seven years (2008). Gas prices declined throughout the holiday weekend, as was forecasted by AAA. Some non-AAA analysts attempted to grab headlines by forecasting that the national average would dip below $2 in time for the holiday, but that did not happen, as the national average on Thanksgiving Day was $2.05 - 75 cents lower than the year before.
"Gas prices have been falling at a rate of about a half cent a day, and if that pace continues, the national average will drop below $2 in the next two weeks," said Mark Jenkins, spokesman, AAA - The Auto Club Group. "But there is potential for the pump price plunge to slow after oil prices climbed a few bucks last week."
The price of oil averaged $42.34 last week - $1.52 higher than the week before. WTI closed as low as $41.71 and $43.04 at its peak.
Oversupply continues to be a dominant factor in keeping downward pressure on global oil markets. Despite geopolitical tensions and military action between Turkey and Russia, both the Brent and West Texas Intermediate benchmarks posted losses at the end of the week. Turkey is a gateway for crude oil via the Caspian Sea, and the most recent incident could lead to significant disruptions in supply. However, contrary to previous years, the global market's current oversupply appears to be mitigating any real impact of this event on the global oil market.
Today, 36 percent of gas stations nationwide are selling fuel below $2 a gallon. Current average prices are $2.04 nationwide, $2.07 in Florida, $1.98 in Georgia, and $1.87 in Tennessee. The national average price for gasoline has declined 23 consecutive days. Prices are also following streaks-of-declines of 16 days in Florida, 20 days in Georgia, and 21 days in Tennessee. Looking forward, pump prices on Christmas Day are forecast to be well below last year's holiday averages of $2.33 nationwide, $2.43 in Florida, $2.32 in Georgia, and $2.18 in Tennessee.
