TAMPA, Fla. — The price of oil moved higher last week and pulled gasoline prices up with it, according to this week's fuel price report from AAA. The average price of gasoline rose 4 cents since October 31. Average prices in the southeastern U.S. also rose 5 cents in Florida, and 8 cents in Georgia and Tennessee.
"This is one of what should be very few speed bumps in the road to lower gas prices as we close out the year," said Mark Jenkins, spokesman, AAA - The Auto Club Group. "Gas prices are forecast to remain low the rest of the year, but at their current lows, pump prices are vulnerable to modest fluctuations in the price of oil, which influences about two-thirds the price of gasoline."
On October 27, the price of oil was $43.20 a barrel - the lowest closing price since August. Since that day, oil prices rose $4.70, peaking at $47.90 on Tuesday. From there, oil prices gradually declined, closing at $44.29 a barrel - the lowest closing since 10/27. Every $1 shift in oil prices typically brings a 2.4 cent shift in gasoline. That means the oil price increase could be responsible for an increase of as much as 11 cents at the pump, which may be a worst case scenario.
"The fact that oil prices slipped back below $45 a barrel means gas prices should start sliding again," said Jenkins. "But it could take a few days before the downward shift resumes, as gas prices are not usually as fast to respond to falling oil prices as they are to rising ones."
The most recent forecast from the U.S. Energy Information Administration has the price of gasoline averaging $2.11 this month and $2.03 in December. Last year, the average prices were $2.89 and $2.51 respectively.
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