Friday March 29th, 2024 9:57AM

Gas prices in Georgia up two cents, but could drop if U.S. oil production ramps up

Gas prices in Georgia are about two cents higher this week, starting 2018 as the most expensive year beginning since 2014.

"It has been anything but a normal January for prices at the pump," said Mark Jenkins, spokesman for AAA. "Normally, demand slips and supplies build. However, this story so far this year has been a rally in oil prices. Oil prices strung together three weeks of significant gains, raising the cost of producing gasoline."

Prices in Georgia averaged $2.40, a 17 cent change from 2017, when prices on the date were $2.23.

Jenkins said prices plateaued late last week after the momentum for oil stalled out. While gas prices continue to be steered by the price of oil, additional pressure from refinery maintenance season are expected . 

"During the next few months, refineries will reduce output as they conduct maintenance on their equipment and switch to summer-blend gasoline," said Jenkins. "This usually leads to tighter supplies and forces gas prices higher. However, there is still lingering hope that U.S. oil production will ramp-up sooner than later, which would boost inventories and push energy prices lower."

In the state, AAA reported Brunswick had the highest price for gas at $2.51. GasBuddy.com reported Atlanta's prices were around average at $2.45.

"After several weeks of rising gasoline prices, it appears that perhaps the tide has turned and the bigger increases have started to fade," added Patrick DeHaan, head of petroleum analysis for GasBuddy. "Oil prices remain near multi-year highs but do show some signs of buckling at least slightly, but for motorists, we have not and may not see sizable relief just yet. Great Lakes refinery issues continue to flare up with no warning, and gas prices there may continue to be more volatile in coming weeks. Meanwhile, total U.S. oil inventories stand 127 million barrels lower than a year ago, which has led gas prices to these seasonally high levels. What continues to impress is the large spread in prices between stations nearby, even as gas prices remain somewhat low, unsuspecting motorists have seen price differences of 10 to as much as 50 cents per gallon between neighboring stations in some large cities."

AAA also predicts a resurgence in U.S. oil production forecasted by the Energy Information Administration will lead to increased domestic production that could potentially surpass Saudi Arabia and Russia in barrel production per day, reaching potentially 11 million barrels per day by November 2019.

  • Associated Categories: Business News, Local/State News
  • Associated Tags: AAA, Gas prices, GasBuddy
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