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Oil Prices Jump; Gas Keeps Falling

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By RUSSELL RAY

rray@tampatrib.com

Published: December 16, 2008

TAMPA - Although oil prices rose last week, gasoline prices in the Tampa Bay area continue to fall.

Local retailers are charging $1.63 for a gallon of regular unleaded, down from $1.69 on Dec. 9, according to AAA. A year ago, the same grade of gas was averaging $3.01 a gallon.

Prices will continue to decline this week because of flat demand and abundant gasoline supplies, AAA said.

On Friday, the price of oil rose $5.47 a barrel to close at $46.28 on the New York Mercantile Exchange. Prices fell $1.77 to settle at $44.51 after briefly spiking above $50 Monday.

The Organization of Petroleum Exporting Countries will meet in Algeria this week to discuss cutting production by at least 2 million barrels a day.

Such a cut could push oil prices higher. However, the increase wouldn't last long, AAA spokesman Gregg Laskoski said.

"OPEC attempts to curb production do not carry the threat they once did simply because they rarely achieve full compliance," Laskoski said.

Despite last week's surge, oil prices still are 50 percent lower than they were a year ago.

In the Tampa Bay area, retailers are charging $1.49 to $1.72 for a gallon of regular unleaded, according to gasbuddy.com, which tracks the highest and lowest pump prices in markets nationwide.

The cheapest gas is in Missouri, where prices are averaging $1.49 a gallon.

Reporter Russell Ray can be reached at (813) 259-7870.

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