VIRGINIA BEACH, VA (July 11, 2016) – Gas prices in Hampton Roads has continued to drop for 35 straight days during this summer travel season. The current price of gas in the seven cities is $2.00 which is five cent less than a week ago, a 19 cent decrease from a month ago and 64 cents less than a year ago. Lower gas prices mean savings for many motorists this summer and more fun in the sun.
Gasoline prices are poised to continue their slide this week as both crude oil and wholesale gasoline prices turned lower last week. West Texas Intermediate and Brent crude were each down more than 7% last week, with WTI, the primary U.S. benchmark, falling from $48.99 to $45.41 (-7.9%) over the course of the holiday-shortened trading week. The price of oil currently reflects slightly more than half the price of gasoline at the pump, so lower oil prices are expected to result in lower retail gas prices for drivers. Additionally, the most recent Department of Energy report cited domestic gasoline production as just 100,000 barrels per day short of the all-time record, lending further momentum to falling prices.
Global oil prices have continued to sag thanks largely to indications of increased supply. This includes reports that June production by the Organization of Petroleum Exporting Countries rose to more than 32.5 million barrels per day, as Nigerian production ramped up following disruptions. While these reports have pressured global prices lower, the region remains volatile and an incident that impacts production or heightens geopolitical concerns could send prices higher again. At the close of Friday’s formal trading session on the NYMEX, WTI was up 27 cents to settle at $45.41 per barrel.
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