AAA: Weakened Demand Sends Oil to Lowest Price of 2012

Submitted by Anonymous on May 14, 2012 - 9:02am

Gas dropped an average of 8 cents a gallon across Florida as pessimistic economic news across the globe caused the price of a barrel of oil to drop to its lowest this year.

Oil prices settled Friday on the New York Mercantile Exchange at $96.13 a barrel -- $2.36 less than the week prior and the lowest since December.

"As a result of weakened demand, retail gas prices are expected to decrease throughout the week and continue May's downward trend in pump prices," AAA spokeswoman Jessica Brady stated in a release.

According to AAA, demand for fuel dipped as manufacturing numbers and economic growth slowed more than forecast for the month of April in countries such as China, India, and across Europe at a time when supply is more than ample. U.S. oil stockpiles are at their highest level in 21 years, according to the Energy Department, and output from OPEC remains at elevated levels.

"Motorists are paying almost 30 cents less for a gallon of gas nationwide than they did this time last year."

The average gallon in Florida sold for $3.63, nearly a dime less than the national mark.

A month ago, gas cost $3.95 a gallon in Florida, 2 cents higher than a year earlier.

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