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Rising oil prices push pump prices higher

Staff Reports • Apr 30, 2016 at 3:00 PM

After declining the first few days of last week, prices at the pump rose in line with the price of oil.

The national average price of gasoline is $2.13 - 2 cents more than a week ago, but pump prices remain 38 cents less than a year ago, and $1.56 less than this time two years ago.

"The price of oil rose $4 last week, which could lead to a total increase of nearly 10 cents at the pump in the near future," said Mark Jenkins, spokesman for AAA. "The national average is likely to inch higher in the coming months as refineries work to keep pace with growing gasoline demand; however, prices remain on target to provide drivers with some of the cheapest summertime gas prices in more than a decade."

Extreme oversupply continues to characterize the global oil market. However, the price of crude oil rose due to news of U.S. crude oil inventories and estimates of future production. According to the U.S. EIA’s latest forecast, low oil prices are expected to contribute to a decline in U.S. oil production from the lower 48 states in 2017.

Larger-than-expected draws in domestic inventories combined with a smaller-than-expected growth in crude oil inventories are also believed to be contributing to the bullish sentiment that is beginning to surface in the crude oil market.

In Florida, the state average price of $2.08 was 2 cents more than a week ago and 3 cents more than a month ago, but 48 cents lower than this time last year and $1.67 less than two years ago.

In Georgia, the state average price of $2.09 was the same as a week ago and 12 cents more than a month ago, but 29 cents less than a year ago and $1.57 less than this time two years ago.

In Tennessee, the state average price of $1.95 was 2 cents more than a week ago and 9 cents more than a month ago, but 36 cents less than a year ago and $1.57 less than this time two years ago.

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