Oil Prices and Consumption FALL, Stockpiles at 10-month HIGH!

Jan 23, 2012 at 07:15 am by bryan


Although retail gasoline prices inched up last week, the price of a barrel of oil closed below $100 for the second week in a row. Oil prices fell after the U.S. Energy Department reported gasoline consumption dropped to 8 million barrels a day, the lowest level since 2001. U.S. stockpiles of gasoline increased 3.7 million barrels last week to 227 million--a 10-month high. Oil prices settled Friday at $98.46 a barrel on the New York Mercantile Exchange--24 cents less than the week prior.

"The demand fundamentals remain weak both in the U.S. and abroad, a main factor keeping oil prices below $100," said Jessica Brady, AAA spokesperson, The Auto Club Group. "China's manufacturing numbers fell for a third month and Europe's debt issues continue to place bearish pressure on the market. Retail gas prices will likely remain relatively unchanged this week as demand remains below par."

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The national average price of regular unleaded gasoline remains unchanged from last week at $3.38 per gallon. Georgia’s average price of $3.40 reflects a 4-cent increase from last week, respectively.  Florida’s average price of $3.48 increased 3 cents, while Tennessee’s average price of $3.27 rose 2 cents from last week. Here in Murfreesboro, a few discounters were offering $3.17 per gallon regular gas. With consumption down, watch for local prices to begin fluctuating. 

 

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