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Falling gas prices may go lower

The price of crude hits a five-month low, but drops at the pump may not be as big as recent relief.

Tampa Bay area gasoline prices, down 69 cents for a gallon of regular from a record high in September, are likely to fall a bit more as crude oil prices fell more than $1 to nearly $56 a barrel Thursday, their lowest level in five months.

The price decline eased concerns that gas prices - with a gallon of regular unleaded averaging $2.30 in the area - could rise just before the busy Thanksgiving holiday. The drop in area prices has been swift, down 23 percent in 11 weeks. But future declines may not be as dramatic.

Oil prices among the 11-member Organization of the Petroleum Exporting Countries fell below $50 a barrel Thursday for the first time since the start of June. That may trigger calls from some producers for the OPEC cartel to cut output.

And it is possible a rough winter will keep prices from falling more. A cold snap could boost demand for heating oil and drive up energy prices.

Statewide, gas prices averaged just less than $2.41 a gallon for regular Thursday, according to AAA data supplied by Oil Information Service. The Pensacola are reported the lowest price at just less than $2.21. South Florida markets, reflecting the recent disruption from Hurricane Wilma, reported higher prices, with West Palm Beach topping out at $2.58.

Among the states, Alaska reported the highest average price at $2.68, while Oklahoma was $2.03. Nationally, gas averaged just less than $2.27.

[Last modified November 18, 2005, 01:27:15]