Gas prices up, but relief appears in sight

ALBANY — The days of falling gas prices appeared to be over for the foreseeable future. But maybe not.

While prices at the pump rose an average of 8 cents a gallon in metro Albany over the past seven days, jumping from $2.018 a gallon to $2.098, and average prices rose 7 cents a gallon in the state of Georgia and 3 cents nationally over the same seven-day period, officials are saying an oversupply of gasoline could reverse the upward trend.

“Gas prices are slipping lower, due to an oversupply of gasoline,” Mark Jenkins, a spokesman for gas price surveyor AAA-The Auto Club Group, said in a news release Monday. “Gasoline supplies are at record highs, according to the latest report from the EIA. That’s because refineries had been running hard to meet seasonal demand for both heating oil and exports. In doing so, they were left with more gasoline than there was demand for. State averages could drop another 3-5 cents in the next 7-10 days as a result.”

The average price in Georgia was at $2.167 Monday, according to AAA and fellow surveyor GasBuddy, but that average had already started falling later in the day. The national average was at $2.261.

The least expensive gas price averages among Georgia’s metro statistical areas Monday were in Warner Robins ($2.06), Catoosa-Dade-Walker ($2.08) and Columbus ($2.09), while the most expensive average prices were in Atlanta ($2.21), Hinesville-Fort Stewart ($2.19) and Brunswick ($2.18).

Oil prices held relatively steady last week. Friday’s settlement of $53.69 a barrel for WTI was 11 cents less than the week before. Meanwhile, gasoline futures dropped 6 cents on the NYMEX and wholesale prices followed suit.

“The national average saw limited upward movement in the last week, while the lowest-price stations overall were the locations that saw prices tick higher,” Patrick DeHaan, head of petroleum analysis for GasBuddy, said. “The percent of gas stations in the U.S. selling under $2 per gallon fell from 37 percent to 27 percent over the last week as oil prices held above $53 per barrel. We’re also starting to see early refineries begin seasonal maintenance, which may aid prices moving higher in the weeks ahead.

“Part of where gas prices go from here and how quickly depends on whether or not politicians can make a long-term budget agreement. Another prolonged shutdown will hurt the economy and likely keep gas prices more muted. In addition, watch for any progress of a broad trade deal with China. Even the sub-zero temperatures upcoming in many areas could play a role in gasoline prices, diesel prices and heating oil. It may keep Americans at home, using more heavy oils to heat their home.”

Crude prices could face upward pressure this week as a result of political turmoil in Venezuela. The once oil-rich nation sits on the largest oil reserves in the world, but production has declined during its prolonged economic struggles. Venezuela now faces potential sanctions from the United States on crude exports. Sanctions are being considered as a method to remove Venezuela’s President Nicolas Maduro from power. This could also result in tightening global crude supplies and higher prices.