Virginia Beach, Va., (June 20, 2016) – Gas prices have decreased for 15 straight days in Hampton Roads. Today’s average gas price in the seven cities is $2.13, which is a five cent drop from last week and 48 cents less than last year. Gasoline demand remains on track to set a new all-time high for the 2016 summer driving season, however, crude oil remains relatively less expensive than recent years which are contributing to direct savings at the pump.
Pump prices generally peak during the summer months, due to imbalances in supply and demand. Unlike many recent years, supply appears to be meeting the growing demand and as a result prices have held relatively steady and markedly lower than one year ago. Gas prices at the pump remain at some of their lowest levels since 2005, and these comparative savings should persist, barring and major disruptions in production or supply.
Crude oil prices continue to swing on speculations of increased production and market dynamics related to the geopolitical issues. Both primary global benchmarks, West Texas Intermediate and Brent Crude, opened the week with gains credited to questions surrounding whether the U.K will exit the European Union, and what, if any impact it will have on the global oil market and the U.S. dollar. A vote is scheduled for later this week. News about U.S. gasoline demand and the U.S. dollar are also expected to influence crude oil prices in the near term – both factors tend to lead to fluctuations in the price drivers pay at the pump. After reaching its lowest settlement price since May 13 earlier in the week, WTI closed out Friday’s formal trading session on the NYMEX, up $1.77 to settle at $47.98 per barrel.
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