As Harvey and Irma fallout dwindles, so do gas prices.
(FinancialPress) — Central Florida‘s seasonal gas price drop took longer than usual this year, mostly due to the fallout of Hurricanes Harvey and Irma.
Metro Orlando has seen gas prices drop $0.10 over the past week, reaching an average of $2.43 per gallon of regular unleaded, as per a report by AAA‘s Daily Fuel Gauge released Wednesday.
However, the bottom price that some stations from that area have defined is of $2.31 per gallon, signaling that the trend could reach even lower.
October usually sees gas prices drop after summer driving season winds down, and refineries start moving off of more eco-friendly summer fuel blends. But as Hurricane Harvey caused some Gulf Coast refineries to close down around the end of August, and Hurricane Irma generated supply issues for gas by mid-September, the drop took longer than normal.
Metro Orlando stations‘ prices peaked at $2.71 from September 7 to 16. The last time that prices were that high was in December 2014. During that year, they reached a top price of $3.71.
The norm for prices under normal circumstances would be for them to be lower, as oil is currently trading at $50 a barrel on the New York Mercantile Exchange.
“Gas prices remain inflated by about 20 to 30 cents and should decline another 5-10 cents this week… The state average is falling by about a cent a day, as retail prices continue to recover from the effects of Hurricanes Irma and Harvey.”
-Mark Jenkins, AAA spokesman
As reported by Bloomberg, the Saudis plan to continue with the output cuts – even increasing them to record amounts in the upcoming weeks.
“If you are going to cut to your customers in November, it’s probably a clear sign that you expect these production cuts are going to continue,”
-Phil Flynn, Price Futures Group