Pop the Cork! Gas Prices Continue to Drop into the New Year

Gas Prices
Gilmore Gas

VIRGINIA BEACH, Va., (December 31, 2015) – This year ends on a good note with gas prices steadily declining in Hampton Roads, bringing savings to many motorists. The current price average for gas in Hampton Roads is $1.77 which is two cents lower than last week, nine cents less than last month and a 44 cents decrease since this time last year. Gas prices haven’t been this low since 2008 for Virginia’s cities. The current state average for gas is $1.81 which is four cents more than Hampton Roads, but still 36 cents less than last year. Whereas, the national price for regular gas isn’t far away from Virginia’s prices with the current average at $2.00, 26 cents less than last year.

Leading into 2016, the national average is expected to continue to slide because supply should continue to outpace demand. Gas prices typically fall during this time of year as demand for gasoline decreases. Many motorists will remember the fourth quarter of 2014 when pump averages tumbled from $3.33 on October 1 to $2.26 on New Year’s Eve. While seasonal price declines are again reflected across much of the country, prices on the West Coast have moved higher following supply issues in California. Earlier in the year, ExxonMobil’s Torrance, CA refinery unexpectedly went offline, and as a result, prices spiked in the region. Ongoing and unexpected refinery maintenance has kept production from returning to normal levels. New problems have tightened supply within the region and once again sent prices higher. This regional challenge could keep the national average higher than we would otherwise see and contribute to volatility to close out the fourth quarter of 2015.

The impact of the U.S. removing its decades-old ban on crude oil exports has narrowed the difference between West Texas International crude oil and Brent prices, and pushed the price of WTI above Brent last week for the first time since August 2010. Oversupply continues to characterize the global oil market, and the impact of parity between the two benchmarks is now being discussed based on its ability to impact both domestic production and the global energy landscape.

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 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