VIRGINIA BEACH Va., (November 4, 2015) - Hampton Roads average price of gas in October was $2.00 per gallon, which was the cheapest monthly average since January 2015 and the lowest October average since 2006. By comparison, the average price of gas in October 2014 was $3.01 per gallon for the seven cities. This year, Hampton Roads gas average declined 19 out of 31 days in October for a total of 10 cents per gallon.
Across the country, gas prices remain relatively inexpensive compared to recent years due to the low cost of crude oil. WTI oil prices closed yesterday at $47.90 per barrel. By comparison, the cost of oil a year ago was $77.19 per barrel.
Oil prices are much lower than a year ago due to an abundance of supplies and weakening global demand. Oil production remains strong in regions such the Middle East and in the United States, while worldwide demand has weakened due to slower than projected growth in the global economy, particularly in China.
Commercial stocks of domestic crude oil are 27 percent higher than a year ago, according to the EIA, while supplies of gasoline are nearly seven percent higher than a year ago.
Many refineries conduct maintenance in the autumn to maintain equipment following the busy summer driving season. This maintenance helps refineries run smoothly during the year, but it can lead to a temporary decline in fuel production. The Energy Information Administration estimated that Midwestern refineries conducted a record level of maintenance in October, which is the main reason why prices in that region were more volatile than in neighboring areas.
Drivers 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 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