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Fuel Prices Steady As Oil's Drop Continues

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By RUSSELL RAY

rray@tampatrib.com

Published: December 23, 2008

TAMPA - After weeks of steady decline, gasoline prices in Florida and elsewhere have flattened as millions prepare to travel this holiday weekend.

In the Tampa Bay area, the price of regular unleaded is averaging $1.63 a gallon, unchanged from a week ago, according to AAA.
Industry observers expect prices will remain steady this week.

Despite last week's decision by the Organization of Petroleum Exporting Countries to cut production by 2.4 million barrels a day, the price of oil fell to a four-year low Friday, closing at $33.87 a barrel.
Oil prices are down 77 percent from a record $147.27 a barrel on July 11.

"OPEC is undermined now by both non-OPEC oil producers such as Russia, as well as some of its own members who are not eager to comply with the intended market manipulations of the leading producers," said AAA spokesman Gregg Laskoski.

Meanwhile, demand for U.S. gasoline continues to fall as oil and gasoline supplies grow, the U.S. Department of Energy said last week.

The sharp drop in demand stems from the weaker economy and fewer people working, Laskoski said. Price is no longer a factor.
Oil supplies in Cushing, Okla., where oil that is traded in New York is stored, rose 21 percent to 27.5 million barrels last week, the highest since May 2007, according to the Energy Department.

Nationally, the price of regular gasoline is averaging $1.66 a gallon, down from $2.98 a year ago, according to AAA.

In Tampa, retailers are charging between $1.52 a gallon and $1.77 a gallon for the same grade of fuel, according to gasbuddy.com, which uses volunteers to track the lowest and highest fuel prices in markets nationwide.

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