AAA: Gas prices hit five-week low

Don’t be afraid to turn your car into that fancy neighborhood and marvel at all of the Christmas displays this week. Take your time, you can afford it.

Gas prices are at a five-week low and heading even lower thanks to bulging inventories and lower consumer demand, travel club AAA said in its weekly gas price update.

Florida’s average per-gallon price had fallen to $2.41 on Monday — three cents less than the previous week and 12 cents less than the same date a month ago, AAA said.

Feared price increases spurred by OPEC’s recent pact to extend oil production cuts through the end of 2018 failed to materialize. Although wholesale crude oil prices remain above $55 a barrel, the OPEC agreement triggered an uptick in domestic crude oil production above the 9.7-million barrel-a-day mark for the first time since 1971.

Gasoline inventories rose by 6.8 million barrels last week, the biggest increase since January.

Increased supply and decreased demand typically leads to lower consumer prices, and analysts say crude oil prices could soon fall back to the $50-a-barrel level — bad news for the oil industry but good news for everyone else.

"The first half of December is normally characterized by weak demand, as cold weather and shorter days cause Americans to drive less,” AAA spokesman Mark Jenkins said. “Look for another week of declines as refineries continue to produce gasoline at a much higher rate than what is being consumed."

Florida’s per-gallon average price was six cents below the $2.46 national average, while South Florida prices, as usual, remained among the highest in the state due to higher local taxes and a higher cost of doing business.

The average gas price in Broward County on Monday was $2.46, three cents less than the previous week. The $2.53 average in Palm Beach County was also three cents lower while the $2.52 average in Miami-Dade County was two cents lower.

However, gas bargains are always available for motorists who know where to look, and thanks to the website and app GasBuddy.com, they’re easy to find.

rhurtibise@sun-sentinel.com, 954-356-4071, twitter: twitter.com/ronhurtibise