Short term gas prices may have peaked.
The American Automobile Association predicted Tuesday prices at the pump should soon start dropping because oil and gas futures plunged after Russia and Saudi Arbia expressed interest in raising the oil supply.
"The drop in crude should amount to a discount of at least 10 cents at the pump, in the short term. Yet that will not happen overnight. Retailers are usually slow to lower prices, especially those who bought shipments of gasoline when prices were at a premium," said Mark Jenkins, spokesman, AAA - The Auto Club Group.
Gas prices jumped eight cents in Florida heading into the holiday weekend. The state average on Memorial Day was $2.91 - the most expensive for the holiday since 2014, when the average price was $3.62.
For First Coast area motorists the good news is that Jacksonville was tied with Punta Gorda and Orlando for the least expensive gas price averages in Florida at $2.88. The West Palm Beach/Boca Raton area was the most expensive, averaging $2.99.
Although the prediction is for lower prices, Saudi Arabia and Russia aren’t expected to make a decision on whether to increase supplies until June 22-23, according to AAA.
Saudi Arabia and Russia have been part of a voluntary production cut agreement among both OPEC and non-OPEC oil producing countries.
Early last week, U.S. oil prices traded at three-and-a-half-year highs of nearly $73 per barrel. On Friday, crude prices plunged below $68 - the lowest daily closing price in three weeks, according to AAA.
Related: Listing Of The Lowest Gas Prices In Jacksonville
AAA's updated gas prices information is available here.
Bill Bortzfield can be reached at bbortzfield@wjct.org, 904-358-6349 or on Twitter at @BortzInJax.
Photo used under Creative Commons license.
