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."


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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