TAMPA, Fla. (Aug. 22, 2010)—The price of crude oil continued its decline last week after the U.S. Labor Department reported an increase in unemployment claims. Investors' optimism about the possibility of demand bouncing back has dwindled after reports show U.S. stockpiles of crude continue to rise as gasoline consumption decreases. Crude oil closed Friday at $73.45 a barrel on the New York Mercantile Exchange.
On a positive note, the value of the U.S. dollar continued to increase and curb the appeal of crude oil as a commodity—helping to keep crude prices down.
“Given the current economic news and strength of the dollar, it’s very likely consumers will not only see retail gas prices drop this week, but also next week,” said Jessica Brady, manager, AAA Public Relations. “Prices at the pump have remained relatively stable this summer providing affordable prices for consumers and it looks like the national average price of regular retail gasoline will stay within the $2.70 range for the Labor Day weekend.”
The national average price of unleaded regular gasoline is $2.71 per gallon, 4 cents less than last week. Florida’s average price of $2.66 also dropped 4 cents last week. Georgia’s average price of $2.57 decreased 6 cents and Tennessee’s average price of $2.54 decreased 5 cents from last week, respectively.
