VIRGINIA BEACH, Va., (December 11, 2017) – Something more to be merry about as the holidays approach and gas prices in Virginia steadily decline. Today’s average price for gas in the Commonwealth is $2.27 which is a two cent drop from last week, a five cent decrease from last month, but still a 16 cent increase from last year. In Hampton Roads, gas prices are even lower with the average price for regular gas at $2.23, a two cent drop from last week, 8 cents lower than last month, and 15 cents more than last year. Drivers can expect pump prices to continue to drop heading into the holiday season as supply strengthens and fall gasoline demand weakens.
“Gas prices should continue to drop as we count down the days to the holidays,” said Georjeane Blumling, AAA Tidewater Virginia spokesperson. “AAA expects gasoline demand to weaken throughout the winter, which translates to better prices at the pump.”
At the close of Friday’s formal trading session on the NYMEX, WTI increased 67 cents to settle at $57.36. Price volatility kicked into high gear last week for crude prices, amid reports of a potential oil worker strike in Nigeria and financial woes in Venezuela potentially impacting its oil production. Nigeria was not subject to the OPEC 2017 oil reduction agreement and as a result, their crude oil exports and market share grew. If the strike occurs, Nigeria’s oil deliveries may be interrupted and cause supply constraints in the global market. For Venezuela, a large-scale default on its debt would lead to it losing access to capital needed to continue producing oil. As a major global exporter, any reduction in the country’s production level is certain to rattle the market and drive prices up.
In additional news, this morning, the energy minister for the United Arab Emirates said that non-OPEC and OPEC countries that have agreed to cut production through December 2018 will announce an exit strategy from the production agreement in June 2018. Although the agreement will still be in effect until the end of 2018, early signals about the end of the agreement may give market observers greater confidence in knowing that global crude supply has been curtailed and prices are likely to keep riding high.
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 Facebook at facebook.com/AAATidewaterVirginia.