Fuel Prices Drop

WABE

June 25th, 2012

Good news for anyone planning a road trip this summer as gas prices are dropping and the forecast is for lower prices ahead.

The average price of regular gas in Atlanta is now $3.25 a gallon – five cents less than last week. The reason for the drop says AAA spokesperson Jessica Brady, is the continuing financial crisis in Europe.

“Not only has that caused the value of Euro to fall which boosts the appeal of crude oil as a commodity because it’s traded in U.S. currency, it’s also caused demand in Europe to fall and consumer sentiment to fall.”

So while demand for oil is falling, U.S. stockpiles continue to increase, and are currently at a 22 year high.

“OPEC decided they did want to increase production as a result of sanctions going to be placed on iran, and there was a supply concern at that point. But even at this point with sanctions going into place on July 1, I don’t think that we’re going to have a supply issue,” Brady continues.