Decline in US Gasoline Prices Continue

Current gas prices are lower by 56 cents compared to the highest regular unleaded gas price of $3.97, posted on April 7. These prices may further drop in June, said the AAA.

By the end of the month, Florida’s average gasoline price for regular unleaded gas may reach $3.25 per gallon. That price has not been seen since the 27th of December last year. The latest gasoline price in the entire state of Florida was $3.41.

The fall is due to the easing tensions between Iran and the West as well as the struggling global economy.

Jessica Brady, spokesperson for the AAA, said that during the last few weeks, negative job data and demand figures have contributed nothing aside from the bearish market pressure all over the world.

Brady said that, although none of this is positive news, it has led to the fall of gasoline prices, which gave some relief for drivers.

The U.S. economic report includes a higher rate of unemployment for the month of May. Simultaneously, the debt crisis of Europe seems to be getting worse, which leads to peak unemployment figures in the region. Moreover, manufacturing in China, as the second biggest oil consumer worldwide, is currently down.

All these are weakening the demand for oil and leads crude oil price below $90 per barrel, which is the lowest since October 2011.

Florida’s current gas price is below the $3.59 per gallon national average. Tennessee has the lowest retail price of gasoline at $3.28 per gallon, said the AAA.

By: Chris Termeer