Gas Prices Continue to Drop as January Comes to a Close

Gas Prices
hand at gas pump

VIRGINIA BEACH, VA. (January 30, 2017) – Gas prices in Virginia looks to close out the month with a 19 day decline.  This is after a worrisome increase at the end of 2016.  The average price for gas across the Commonwealth is $2.14, which is four cents cheaper than last week and last month, but still 48 cents higher than last year at this same time.  The good news is that continual growth in U.S. oil rig numbers and the increased drilling it implies are raising expectations for an increase in domestic oil production. This increase in U.S. crude oil production coupled with seasonal lower driving demand has kept downward pressure on the national average price at the pump as well. Prices have fallen steadily for 21 consecutive days. Today’s national average price for regular unleaded gasoline is $2.27 per gallon, down four cents versus one week ago, five cents less than one month ago, but 47 cents more per gallon year-over-year.

Markets opened Monday morning posting steady crude oil prices as a result of increased U.S. oil production. Oil-services firm Baker Hughes reported that drillers added 15 rigs in the U.S., bringing the total crude oil rig count to 556, the highest since November 2015. The increased U.S. production continues to offset OPEC’s efforts to rebalance the global oil market. End of month surveys of OPEC production cuts are expected tomorrow and traders will be paying close attention to the cartel’s agreement compliance.  Market watchers will also keep a close eye on U.S. production and the impact it has on supply and demand. At the closing of Friday’s formal trading session on the NYMEX, WTI was down 61 cents to settle at $53.17 per barrel.

Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.

As part of North America’s largest motoring and leisure travel organization, AAA Tidewater Virginia provides its more than 330,000 members with travel, insurance, financial and automotive-related services. Since its founding AAA Tidewater Virginia has been a leader and advocate for the safety and security of all travelers.  For more information, visit AAA.com and follow us on Twitter at Twitter.com/AAATidewaterVA or on Facebook at facebook.com/AAATidewaterVirginia