AAA: Consumer sentiment may stabilize gas prices
Written on March 15, 2010
A drop in a consumer sentiment index has helped to stabilize crude oil prices, albeit minimally, the AAA Auto Club South said.
Two weeks of positive economic reports bolstered the price of crude oil above $83 a barrel. But a report from Reuters/University of Michigan showed the consumer sentiment index dropped to 72.5 when it was expected to increase to 74, reducing the price of crude oil to settle at $81.24 a barrel on the New York Mercantile Exchange—26 cents less than its $81.50 price last Friday, AAA said.
U.S. stockpiles of crude oil are at the highest level since August of 2009, with approximately 344 million barrels, according to a March 10 Energy Department report. Fuel demand remains below average both domestically and globally. That means basic fundamentals of supply and demand do not yet support the current high price for crude oil.
Retail prices for gasoline may remain relatively unchanged this week, until we see whether the price of crude oil will continue its decline or increase, said Jessica Brady, manager, Public & Government Relations, at AAA. “Consumers in the Southeast are beginning to worry that retail gas prices will rise to $3 a gallon in the next week or two. While some parts of the nation, like California and Hawaii, are already seeing these high prices, it is unlikely we will see prices rise that high in the next couple of weeks, locally,” she said in the release.
Gas prices in Tampa, on average, were $2.78 a gallon this week, compared to $2.55 a gallon a month ago, according to tampagasprices.com.
The national average price of unleaded regular gasoline is $2.78 a gallon and reflects a four-cent increase from last week. Florida’s average price is $2.84, Georgia's average price is $2.71, and Tennessee’s is $2.54, all of which reflect an increase of five cents, respectively.
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