AAA: Oil falls below $50 a barrel, lowest in 5 years

TAMPA, Fla. - Gas prices fell another 7 cents last week as the price of crude oil continues to drop, according to the latest fuel price brief from AAA. WTI fell below $50 a barrel on the NYMEX, settling at $48.36 on Friday, the lowest settlement since April 2009. <br /> <br /> "The price of crude is continuing its downward slide due to excess supply and weak demand," said Mark Jenkins, spokesman, AAA - The Auto Club Group. "Global oil prices are expected to remain relatively low for the first half of 2015, which could put additional pressure on high-cost production countries like the United States. Rebel forces continue to disrupt supply from OPEC member country Libya, yet the level of global oversupply appears capable of easing concerns that might otherwise send prices higher due to production concerns."<br /> <br /> Sustained low prices for crude have the potential to impact domestic production, with both upstream and downstream companies reportedly beginning to reassess their plans moving forward. Although it is too early to tell what, if any, impact low crude prices will have on domestic production, it is worth noting that companies will increasingly face the choice of either continuing expansion plans or cutting capital expenditures in a market that offers significantly lower profit margins.<br /> <br /> The average price for regular unleaded in Tennessee dropped below $2 a gallon for the first time since May 2009. Florida and Georgia's averages could dip below $2 a gallon by the end of the month. The streak of declines at the pump continued in all three states. The average price has fallen for 100 consecutive days in Florida, 101 in Georgia, and 102 in Tennessee. Gasoline prices are currently at their lowest level since May 2009. <br /> <br /> The national average was $2.14 Sunday, 7 cents cheaper than a week ago, 48 cents below last month, and $1.18 less than last year. Florida's average of $2.23 is 9 cents cheaper than last week, 44 cents less than last month, and $1.17 below the price this time last year. Georgia's average of $2.10 is 10 cents cheaper than a week ago, 45 cents less than last month, and $1.11 below the price this time last year. Tennessee's average price of $1.97 fell 8 cents from last week, is 47 cents cheaper than last month, and $1.15 less than this time last year.

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