Gas prices drop nearly a dime

January fuel costs decline, but rise ahead

Gasoline prices declined in Florida for a 25th consecutive day on Monday, but motorists should expect an uptick next month, travel club AAA said in its weekly Gas Price Brief.

Monday’s average statewide price of $2.31 for unleaded regular was 4 cents lower than the previous week and 9 cents lower than a month ago. It was also 48 cents higher than a year ago, when the price had dipped to an unusually low $1.83.

AAA attributed the current run of price dips to seasonal trends —prices usually dip in January — and increased U.S. crude oil production.

“Falling gas prices are normal for this time of year,” AAA spokesman Josh Carrasco said. “Low seasonal demand combined with increases in domestic production has pushed fuel prices lower. We should continue to see gas prices trend downwards to wrap up the month, but should expect an uptick in prices at the pump in February, due to refinery maintenance season.”

Gas prices have been on a roller coaster run in recent weeks. After prices tumbled to less than $2 in many parts of Florida through Thanksgiving week, oil producing nations agreed to cut production by 1.8 million barrels of day for the first six months of 2017. That pact drove crude oil prices above $50 a barrel, inducing U.S. oil producers to add capacity.

Baker Hughes, an oil services firm, reported that drillers added 15 crude oil rigs and U.S. producers are now operating with 556 rigs, most since November 2015.

While prices in South Florida ranged widely, as usual, more gas stations could be found selling for around $2.20 compared to two and three weeks ago, according to pricecomparison site GasBuddy.com.