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Oil prices drop below $100 a barrel, look for gas prices to continue to drop | News

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Oil prices drop below $100 a barrel, look for gas prices to continue to drop
Oil prices drop below $100 a barrel, look for gas prices to continue to drop

Tampa, FL -- Oil prices dropped below $100 to settle Friday at $99.29 a barrel on the New York Mercantile Exchange—93 cents less than last week, according to a AAA report.

Prices fell after Saudi Arabia announced it will increase production quotas next month by 10 million barrels a day.

The decision was partly based on concern the high oil and gas prices are slowing the worldwide economic recovery. The increase is said to ease supply concerns and help make up for the loss of Libyan oil exports. The U.S. dollar was given a boost after the value of the euro fell, which could push oil prices lower this week.

"The fact that Saudi Arabia decided to increase output quotas is good news for consumers," said Jessica Brady, spokesperson, AAA Auto Club South. "The increased supply should help keep oil prices below $100 a barrel and keep the downward momentum on retail gas prices. Gas prices have steadily decreased throughout the past few weeks and are expected to move even lower this week. If prices continue to drop as expected, we could see a much healthier travel outlook for Independence Day than we did during Memorial Day weekend."                     

Average retail gasoline prices in Tampa have fallen 4.9 cents per gallon in the past week, averaging $3.56/g yesterday. This compares with the national average that has fallen 5.1 cents per gallon in the last week to $3.71/g, according to gasoline price website TampaGasPrices.com.

Including the change in gas prices in Tampa during the past week, prices yesterday were $1.01/g higher than the same day one year ago and are 30.0 cents per gallon lower than a month ago. The national average has decreased 23.3 cents per gallon during the last month and stands $1.01/g higher than this day one year ago.

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