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Falling demand helps push gasoline prices downward

By Palm Beach Business.com

DELRAY BEACH — Gasoline prices have actually fallen over the past week, the first time that’s happened in months. And it’s likely to happen again this week as falling demand for fuel is expected to continue to depress prices at the pump.

The U.S. Energy Information Administration reported Monday that the average price for a gallon of regular has dropped to $3.849 from $3.96 a week earlier — a decline of 11.1 cents.

In Florida, regular dropped to an average of $3.789 a gallon from $3.888 a week earlier, according to EIA.

AAA’s Fuel Gauge report had regular averaging $3.917 a gallon, down from $4.001 in Palm Beach County, and $3.888 a gallon, down from $3.959 a gallon in Broward.

Crude oil prices remained relatively unchanged from last week with oil closing Friday at $99.49 a barrel on the New York Mercantile Exchange —16 cents less than the week before. The value of the euro fell last week, pushing the value of the dollar higher and oil prices lower.

Fuel demand is down in the U.S. and Europe, while China’s and Japan’s economies are expected to slow causing global fuel demand to drop. Auto travel this Memorial Day weekend is projected to decrease slightly compared to 2010 as a result of higher gas prices.

“Retail gas prices are expected to decrease further this week,” said Jessica Brady, spokesperson, AAA Auto Club South. “Gas prices could drop another 5 cents before the Memorial holiday, causing more travelers to make last minute decisions to take a trip before the three-day weekend.”