VIRGINIA BEACH, Va., (November 6, 2017) – According to the Energy Information Administration (EIA), the latest gasoline demand measurement is the highest for the end of October since 2006. Virginia rank moves up to 7th least expensive market, but gas prices across the Commonwealth are slowly moving up. The current average price per gallon in Virginia is $2.28 which is three cents more than last week, seven cents more than last month and 22 cents higher than last year. Hampton Roads is looking even better with a current average of $2.25 per gallon, four cents more than last week, three cents more than last month and a 23 cent increase from last year. Across the U.S., today’s average is $2.53, six cents more than a week ago, two cents more than a month ago and 31 cents more than last year.
“October has seen strong demand numbers, in part, due to consumers taking advantage of the unseasonably warm weather rather than spending time indoors,” said Georjeane Blumling, AAA spokesperson for AAA Tidewater Virginia. “As consumers fill up their tanks more frequently, we are seeing supply levels tighten and gas prices increase. But the good news is that we don’t expect this increase to be long-term.”
Last week, WTI hit a new 2017 high at $54.54 and the market will likely build on those gains this week. At the close of Friday’s formal trading session on the NYMEX, WTI settled up $1.10/bbl at $55.64/bbl. The latest EIA report showed major inventory draws and increased exports, both of which have helped push oil prices higher. Crude oil inventories slid by 2.4 million bbl, while crude oil exports reached a new record of 2.133 million b/d. All of this news has given market observers renewed confidence in seeing oil prices pushing higher as supplies appear to grow tighter and demand remains strong, fueled by oil demand growth in key export markets.
Last week, Baker Hughes, Inc. reported that the U.S. oil rig count dropped by eight rigs, bringing the total to 729. The news follows reports that at OPEC’s next meeting in Vienna on Nov. 30, OPEC and allied non-OPEC producers will review the agreement to reduce production through March of next year. Some reports have stated that the group may extend the agreement through the end of 2018, which if true, will likely help boost oil prices through the end of the year.
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