The oil rally seemed to settle near July's end and oil prices trended below $90 a barrel. Prices fell after European stimulus measures weren’t made, Iran's threats to disrupt supply didn't occur, and economic news remained lackluster. As a result, retail gas prices were expected to stabilize at the start of August.
Instead oil prices spiked after the Labor Department announced the U.S. added 163,000 new jobs in July and news of Tropical Storm Ernesto generated concern in the Gulf. Oil prices settled Friday at $91.40 a barrel on the New York Mercantile Exchange—$1.27 more than the week prior. Friday was the third consecutive week oil prices settled more than $90 a barrel.
"Last week shows just how volatile the market is and how diverse the factors are that affect oil prices," said Jessica Brady, AAA spokeswoman, The Auto Club Group. "The forecasted stability in gas prices as we entered August ended up being another 10-cent increase at the pump. Motorists will likely see gas prices increase again this week."
The national average price of regular unleaded gasoline is $3.61, a 12-cent increase from a week ago today. Florida’s average of $3.53 and Tennessee’s average of $3.39 both increased 11 cents from last week. Georgia’s average price of $3.48 for a gallon of gas increased 8 cents from last week, respectively. Visit AAA’s Daily Fuel Gauge Report to find national, state, and local metro market retail gasoline prices.
Current and past gas price averages: National: