Jan 10, 2009 10:23 pm US/Eastern
Bad Economic News May Ease S. Florida Gas Prices
MIAMI (CBS4) ―
A Friday drop in the price of a barrel of crude oil caused some South Florida gasoline dealers to back down on price increases which hit as much as 20 cents in the past week, with some prices rising as much as 10 cents in a day.
The Florida Triple A said gas prices have hit an average of $1.81 a gallon for regular unleaded across the state. "What's driving this is the situation in Gaza," said Gregg Laskoski, a spokesman for AAA Auto Club South in Ruskin.
However, Jim Smith, head of the Florida Petroleum Marketers & Convenience Store Association, doesn't believe that will happen. Smith believes consumer demand for gas and oil is down worldwide and that will help to keep prices down.
Worries about global economic growth and a U.S. jobs report showing unemployment is at its highest in 16 years pushed oil prices lower Friday.
Light, sweet crude for February delivery was down $1 at $40.70 barrel by midday in Europe in electronic trading on the New York Mercantile Exchange.
The contract overnight fell 93 cents to settle at $41.70. Oil in New York closed at $40.32 a barrel, down almost 5%.
Before being depressed by economic news, oil prices had risen earlier this week to above $48 on worries the conflict in Gaza could engulf the oil-rich Middle East.
The drop caused some South Florida stations to reverse the price hike, dropping the price a few cents Saturday.
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