Gasoline, Oil Prices Continue Drop, Despite Hurricane Ike

Even though Hurricane Ike entered the Gulf of Mexico today on a path toward the Texas coast and potentially its vast refinery complex, gasoline prices in Florida and elsewhere continued to drop.

That's right. Drop.

In the Bay area, the average price of regular unleaded slid 0.4 cents today, to $3.611 a gallon, down from $3.615 Monday, according to AAA's daily survey.

Bay area pump prices have plunged more than 16 cents a gallon in the past month, AAA said.

In the Tampa Bay area, retailers are charging $3.49 to $3.79 a gallon today for regular unleaded, according to www.gasbuddy.com, which tracks the highest and lowest pump prices in markets nationwide.

Statewide, the price of regular unleaded is averaging $3.684 a gallon, down from $3.818 a month ago, according to AAA.

Nationally, motorists are paying an average of $3.652 a gallon, 46 cents lower than the record high average of $4.114 set July 17.

The main reason for the slide in gasoline prices locally and nationally: The price of crude oil is tumbling.

Today, oil prices fell to their lowest level in five months as members of the Organization of Petroleum Exporting Countries, meeting in Vienna, indicated that the cartel will not cut oil production.

Crude oil prices closed down $3.08 a barrel today at $103.26 on the New York Mercantile Exchange, the lowest settlement price since April 1. Earlier in the day, prices dipped as low as $102.20 on the New York Mercantile Exchange.

AAA spokesman Randy Bly warned that gas prices could surge if Hurricane Ike alters its course. The hurricane appears to be headed well south of major oil and natural gas installations in the Gulf of Mexico.

But, Bly said, "the uncertainty of the path of Hurricane Ike could place upward pressure on oil and gasoline prices if the storm hones in on the petrochemical coast of the northern Gulf of Mexico."