Release of oil reserves causes drop on oil prices this week | News
Tampa, FL -- Last week, the International Energy Agency (IEA) announced the release of 60 million barrels of oil into the market, according to AAA Auto Club South. The U.S. Strategic Petroleum Reserve will provide 30 million barrels, while the remaining barrels will come from other countries.
The decision was made after OPEC failed to come to any agreements at their June 8 meeting to increase productions quotas to help alleviate high oil prices and make up for the loss of Libyan sweet crude.
Before the IEA made the announcement, oil prices were dropping as a result of slowed economic growth, both nationally and internationally, and Europe's debt issues.
Followed with the release of oil reserves, crude prices fell Friday to settle at $91.16 a barrel on the New York Mercantile Exchange—$1.85 less than last week.
"The IEA's decision to release oil reserves into the market is part of an effort to help stimulate the economy by making gas prices less of a burden on consumers and hopefully create more disposable income," Jessica Brady, spokesperson, AAA Auto Club South said in a release. "Although oil prices were falling before the IEA announcement, the reserves will help keep downward pressure on oil prices and cause retail gas prices to drop even further during the coming weeks. On average gas prices have fallen about 5 cents a week and the trend is expected to continue."
The national average price of unleaded regular gasoline is $3.57 a gallon, 8 cents less than last week. Florida’s average price of $3.54.
Average retail gasoline prices in Tampa have fallen 6.4 cents per gallon in the past week, averaging $3.45/g Sunday, June 26, according to gasoline price website TampaGasPrices.com.
Including the change in gas prices in Tampa during the past week, prices yesterday were 83.7 cents per gallon higher than the same day one year ago and are 23.1 cents per gallon lower than a month ago.