Gas prices drop for second week in a row

ALBANY — Gas prices continued to inch downward in metro Albany and across the state over the past week, falling 3.8 cents a gallon in southwest Georgia and slightly less — 3.6 cents — across the state. The trend in Georgia matched the national average, which has fallen 3.1 cents over the past seven days.

Metro Albany’s average price per gallon of $2.658 was among the lowest among the state’s 15 metro areas, coming in a fraction of a cent less than Warner Robins, Augusta-Aiken and Dalton. Atlanta, Athens and Gainesville had the highest averages.

Albany’s average is still 51.2 cents a gallon higher than it was at this time last year.

“Gasoline prices continue to fade after peaking just ahead of Memorial Day, largely in part due to previous discussion that OPEC may lift output, pushing oil prices back down to the mid-$60s (per barrel),” Patrick DeHaan, head of petroleum analysis for online surveyor GasBuddy.com, said. “As we’ve been expecting for months, gas prices will likely decline in the month of June as summer gasoline inventories continue to build and refiners continue to crank out fuels like gasoline and diesel.

“A solid majority of states saw average gas prices decline last week, and I expect we’ll hold that trajectory again this week.”

Since peaking at $2.84 on May 27, gas prices have declined 14 consecutive days for a total of 6 cents. Despite the discount, Georgia motorists are still paying 59 cents per gallon more than this time last year.

“Gas prices could drop another 5 cents this week, unless the market suddenly shifts course,” Mark Jenkins, a spokesman for surveyor AAA-The Auto Club Group, said. “Prices at the pump are still adjusting to the recent drop in oil and wholesale gasoline, due to the potential of increased crude output from OPEC. However, there is still volatility in the market, and pump prices could move higher if OPEC decides against easing production cuts at a meeting later this month.”

Saudi Arabia increased production last month by 100,000 barrels a day, after curtailing output for nearly two years. The kingdom was part of an agreement with other OPEC and non-OPEC oil producers to reduce output in hopes of raising oil prices. The production cut worked; the oil market tightened and crude prices reached near four-year highs. However, there are growing concerns that strong demand would soon outpace supplies, and economies will suffer as a result of the higher prices.

The participants in the agreement are set to reconvene on June 22 to discuss increasing output.

U.S. crude prices settled at $65.74 per barrel on Friday — a 7-cent decline from the week before, and $6.50 less than this year’s high.