Gas prices climb another 3 cents last week; 35 cents more vs. a year ago

Media release: Oil prices fell below $100 last week after news the European Union will consider delaying sanctions on Iran for six months to allow European countries to find alternative supplies. The news eased concerns Iran will attempt to block the Strait of Hormuz, which transports up to 17 million barrels of oil a day.

Oil futures also fell after France announced the Standard & Poor's will reduce their AAA credit rating to AA. The reduced credit rating is a sign the European debt crisis is far from over. Europe's debt issues continue to weigh heavy on the market causing speculation Europe may enter a recession and stifle global oil demand. Crude oil closed Friday at $98.70 a barrel on the New York Mercantile Exchange--$2.86 less than the week prior.

"As long as tensions with Iran are easing, oil prices should remain below $100 a barrel," said Jessica Brady, AAA spokesperson, The Auto Club Group. "The same bearish factors that put downward pressure on oil prices over the past few weeks are still prevalent, helping push both oil and retail gas prices lower. Consumers should start to see pump prices stabilize and may even see prices fall in some areas if a barrel of oil continues to trade below $100 this week."

The national average price of regular unleaded gasoline is $3.38 per gallon, 1 cent more than last week. Florida's average price of $3.45 increased 2 cents, while Tennessee's average price of $3.25 rose 1 cent from last week. Georgia's average price of $3.36 reflects a 3-cent increase from last week, respectively.  

CURRENT AND PAST PRICE AVERAGES

Regular Unleaded Gasoline

                                    Current           Week Ago      Month Ago     Year Ago     

National:                   $3.388       $3.371                $3.250            $3.096

  Florida:                      $3.457          $3.438               $3.285            $3.133

  Georgia:                     $3.368         $3.335              $3.185             $3.014

Tennessee:               $3.256          $3.247            $3.085             $2.960