VIRGINIA BEACH, VA. (May 15, 2017) – Across Virginia, motorists have seen declining gas prices for 26 consecutive days. The current average price for regular gas is $2.14 which is two cents less than last week, nine cents less than last month, and only eight cents higher than last year. In Hampton Roads, the story is even better - gas prices are at $2.11 as the current average price for gas, which is still eight cents higher last year, but four cents less than last week and 12 cents less than last month.
Today’s national average is $2.34/gallon. This price is a penny cheaper than one week ago, seven cents less than a month ago, but +12 cents more than a year ago. The latest Energy Information Association (EIA) report shows that gasoline demand increased by 252,000 barrels on the week. Despite the jump in demand, the continued oversupply of gasoline caused prices in most parts of the country to drop or remain steady with the exception of some states in the Great Lakes and Central regions, where prices increased by a penny or more.
In coming weeks, the onset of summer travel is likely to increase demand which might help dip into high gasoline stocks; however, it may not be enough demand to increase prices significantly.
On Monday morning, U.S. petroleum futures were just below $50 per barrel. Prices rallied after officials from Russia and Saudi Arabia announced that they plan to extend production cuts into March 2018. This news comes after OPEC released its May report, which warns that the global oil market will not rebalance by the end of the year unless there is a collective effort from all oil producers to increase market stability.
OPEC is expected to draft a formalized production cut extension during its meeting in Vienna, Austria, on May 25. However, there is skepticism that any extended cuts will offset growing U.S. production. Last week, U.S. drillers added an additional nine oilrigs, bringing the total U.S rig count to 712 and marking 17 weeks of growth. The expected result of OPEC’s actions is far from certain. Until it is, drivers may continue to benefit at the pump – even during the typically more expensive summer driving season.
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