VIRGINIA BEACH, VA. (January 16, 2018) - Despite the increase in consumer demand, Virginia is ranked 10th in least expensive gas across the nation. The current average price for gas in Virginia is $2.34 which is only four cents more than last week, but an additional 10 cents from last month, and a 13 cent increase from last year. Some areas in the Commonwealth are experiencing even lower gas prices such as Hampton Roads at $2.31. According to the Energy Information Administration (EIA), gasoline demand increased 164,000 barrel on the week to register at 8.8 million. The demand measurement is the highest demand for the first EIA report of January since 2011. The demand increase is a contributing factor to this week’s higher pump prices.
At the close of Friday’s formal trading session on the NYMEX, WTI increased 50 cents to settle at $64.30. Oil prices edged higher last week following the release of EIA’s report for the first week of 2018, which revealed that domestic crude oil production dropped by 290,000 b/d. The decline is the largest U.S. production drop since the highly active hurricane season ended in mid-October last year. Moreover, crude inventories around the country dropped by 4.9-million bbl.
Some market observers are encouraged that oil prices will continue to climb as production slows and inventories grow tighter. However, the drop in production may be short-lived. Baker Hughes, Inc. reported that last week, the number of active oilrigs in the U.S. grew by 10, bringing the total number of rigs to 752. The oil produced by these rigs may help the U.S. reach a new crude production level of 10 million b/d later this year, as speculated by many market observers.
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 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.