Oil’s decline could bring back $2 gas

Summer prices may go lower

Gas prices in South Florida have fallen as much as 7 cents per gallon over the past month and should be heading much lower thanks to a drop in crude oil prices, travel club AAA is reporting.

Statewide and national average prices for a gallon of unleaded gas are dropping as well, as crude oil remains under $50 a barrel.

The price of West Texas Intermediate crude plunged last Thursday to $45.52, its lowest close since before OPEC countries reached agreement in November to cut production.

OPEC’s agreement brought the price to nearly $57 in early January, as the cartel no doubt wanted, but it also prompted U.S. producers to fire up more drilling units and add more product to the wholesale market.

That led to WTI crude closing at $45.52 and wholesale gasoline prices closing 20 percent below April’s highs, possibly foreshadowing a return to retail gas prices near $2 a gallon by summer, AAA spokesman Mark Jenkins said.

“If this trend holds, gasoline will be near or below year-ago levels by Memorial Day, and rival prices seen last summer,” Jenkins was quoted as saying in AAA’s weekly gas price update.

AAA sees Florida’s average price dropping into the $2.20s during the next week or two, rivaling the $2.25 average of last Memorial Day.

Meanwhile, South Florida motorists are already seeing lower prices. The average per-gallon price in Broward and Miami-Dade counties on Monday was $2.41, 3 cents less than a week ago.

Motorists in Palm Beach

County were paying $2.46, 4 cents less than the previous week.

But of course, bargain hunters could fill up significantly cheaper if willing to seek out lower prices, according to the price-comparison website GasBuddy.com.

In Palm Beach County, a Citgo station on Forest Hill Boulevard was selling for $2.19. likely countering Wawa three blocks west at South Congress Avenue, which was at $2.21.

There were still plenty of opportunities in the county to pay higher prices, mostly in Boca Raton and in the unincorporated area just west, such as $3.04 at Chevron on Jog Road, just north of Yamato Road and $3.00 at Valero on Jog and Clint Moore roads. Just south of Florida Atlantic University, a Mobil station at Glades Road and Northwest Seventh Avenue was offering gas for $2.84 per gallon while another Mobil at Yamato Road and Northwest Second Avenue was asking $2.80, GasBuddy reported.

In Broward County, Monday’s low-price hub was Wilton Manors, where a Valero and a 7-Eleven at Northeast 15th Avenue and Northeast 26th Street were staring down the Chevron at Wilton Drive and Northeast Ninth Avenue. All three stations were selling gas for $2.15 per gallon.

Motorists who prefer to spend more could head to Pembroke Pines, where a Chevron on Sheridan Street east of Interstate 75 was asking $2.59, according to GasBuddy.

The lowest prices in Miami-Dade were in Miami Gardens along Northwest 27th Avenue, just north of the Palmetto Expressway. Four stations were selling at $2.19 per gallon, including a Valero station at Northwest 183rd Street, a Marathon at Northwest 171st Street, a RaceWay at Northwest 170th Street and an Exxon at Northwest 169th Terrace.

In Miami Beach, where four stations were selling for more than $3 per gallon.