Florida Fuel Prices Fall After OPEC, Allies Reach Deal

FLORIDA — Drivers have seen an 82-cents increase at the gas pump this year in Florida, according to AAA.

A recent agreement between OPEC (Organization of the Petroleum Exporting Countries) and its oil producing allies to increase production this year has caused gasoline prices to slightly decrease as of July 19 to just under $3 a gallon in most parts of Florida after last week's jump to paying more than $3 at the pump.

The main driver behind the increase at the pump has been the price of crude, AAA said. Domestic oil prices have increased as much as 57 percent since January, as global crude oil supplied struggled to keep up with rising demand.

"Initial reports led to lower prices last week, but it's unclear where the crude market will go from here," Mark Jenkins, spokesperson of AAA, said. "For now, drivers can enjoy a break from rising prices at the pump, with the possibility that retail prices slip a few more cents this week."

Last week, the price for domestic crude reached a new 2021 high of $75.25 per barrel. That was the highest daily average price since October 2018, Jenkins said. However, that price quickly disappeared by mid-week, falling a total of four percent by Friday, to finish the week at $71.81 per barrel. The decline was in reaction to news that OPEC and its allies plan to gradually return 5.8 million barrels a day of production, since making deep cuts last year.

According to AAA's partners at OPIS, the increase is not expected to totally ease tightness in fuel markets this summer, as demand rises amid a re-opening of economies hobbled by the COVID-19 pandemic.

"While this news may not mean significant relief at the pump, it could help prevent prices from going much higher," Jenkins said.

Regional Gas Prices:

Most expensive metro markets — Panama City ($3.15), West Palm Beach-Boca Raton ($3.14), Tallahassee ($3.07).

Least expensive metro markets – Punta Gorda ($2.89), Jacksonville ($2.94), Orlando ($2.94), Fort Myers ($2.95), Tampa Bay ($2.96).

Daily gas price averages can be found at Gasprices.aaa.com .