VIRGINA BEACH, VA. (August 31, 2015) - Pump prices continue to drop and drivers may pay the lowest gas prices since 2004 over the Labor Day weekend. In Hampton Roads the current gas price is $2.20, 10 cent decrease from last week, a 30 cent decline from last month and $1.02 less than last year. In 2004, the average price for gas around Labor Day weekend was $1.78.
“We are very excited to see the price of gas to drop for those travelling on the Labor Day weekend,” said Georjeane Blumling, spokesperson for AAA Tidewater Virginia, “It is a welcome sight for consumers as we move into the fall season.”
The national average price for regular unleaded gasoline has fallen for 14 consecutive days for a total of 20 cents per gallon. Today’s average price of $2.47 per gallon marks a savings of 12 cents per gallon compared to one week ago and 18 cents per gallon versus one month ago. Drivers nationwide continue to benefit from the relatively low price of crude oil with today’s average about 96 cents per gallon less than a year ago.
Despite the persistence of some regional refinery issues, average U.S. gas prices are falling at the fastest rates since December. The BP refinery outage in Whiting, Indiana, which sent prices markedly higher in the Midwest several weeks back, has resumed production. Prices continue to fall week-over-week in the previously impacted states of Michigan, Ohio, Indiana and Illinois. The East Coast is currently facing its own production challenges with reports that the Phillips 66 Bayway refinery in New Jersey is operating at reduced rates. This is in addition to PBF Energy’s Delaware City refinery shutting down its fluid catalytic cracking unit last week due to a fire. These East Coast issues have yet to significantly impact prices in the region as supply continues to outpace demand. Barring any major supply disruptions consumers remain poised to pay the lowest national average for the holiday weekend in 11 years.
Market fundamentals remain bearish, even as oil prices staged a rally late last week that pushed prices a bit higher compared to early-week trading sessions where both Brent and WTI exceeded multi-year lows. China’s economic health and the potential for Iranian oil to return to markets remain front of mind, and are expected to keep downward pressure on global crude oil prices. Oil prices were moving lower again at the start of formal trading today, further validating the sentiment that oversupply will continue to characterize the market in the near term.
At the close of Friday’s formal trading on the NYMEX, WTI settled at $45.22 per barrel recovering from six and a half year low of $38.25 per barrel reached last Monday.
As part of North America’s largest motoring and leisure travel organization, AAA Tidewater Virginia provides its more than 325,000 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