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Rising inventories, economic uncertainty drop gas prices

By Palm Beach Business.com

DELRAY BEACH — Hard to believe that gasoline at the pump approached $4 a gallon just a little over two months ago. But mix a little economic uncertainty with rising crude inventories and prices will tumble.

The Energy Information Administration reported Monday that a gallon of regular averaged $3.572 nationally, down four cents from the previous week. The week of April 2, regular averaged $3.94 a gallon.

In Florida the drop has been even more extreme: regular peaked the week of April 2 at $3.995 a gallon. This week, according to EIA, regular had dropped to $3.34 a gallon. A week ago, it averaged $3.403; a month ago it averaged $3.604.

AAA’s Fuel Gauage report had Palm Beach County averaging $3.496 a gallon, down from last week’s $3.557 and last month’s $3.764. In Broward County, regular averaged $3.468 a gallon down from last week’s $3.521.

Crude oil fell to $84.10 Friday as anemic global economic growth and continued fears over the European debt crisis continued to suppress prices. Crude fell $1.40 Monday to settle at $82.70. The price of crude, of course, is the single largest determinant of the price gasoline.

"Retail gas prices continue to drop an average of 5 cents a week, and in some areas, prices are nearing $3 a gallon," the AAA’s Jessica Brady said.