VIRGINIA BEACH, VA. (January 29, 2018) - Today’s average price per gallon of gas in Virginia is $2.42, five cents higher than last week, 15 cents more than last month and a 28 cent increase compared to last year. Pump prices haven’t been this high in January since 2014 when the prices averaged $3.20. In the Hampton Roads area, the gas prices are slightly lower with the current average at $2.39. Nationally At $2.58, gas prices are four cents more expensive on the week. The Energy Information Administration (EIA) reports an increase on the week in both gasoline demand and inventories.
“Compared to the first few weeks of January last year, consumer gasoline demand is noticeably higher, which is surprising giving the frigid winter Virginia has experienced this month,” said Georjeane Blumling, spokesperson for AAA Tidewater Virginia. “But demand isn’t the only factor driving prices up. Crude oil has been selling at very expensive rates the past few months. Those higher market prices are now trickling down to consumers at the pump.”
EIA’s latest weekly report highlights that U.S. crude inventories reached their lowest level in nearly three years at 411.6 million barrels.
Crude production in the U.S. continues to inch closer to a new 10 million b/d record, which most market analysts expect the U.S. to hit sometime this year. According to the EIA, crude output grew by 128,000 b/d, reaching 9.88 million b/d. Market observers remain cautiously optimistic about this year due to worries about growing production rates from large producers who are not participating in the OPEC production agreement. These producers, such as the U.S., could thwart OPEC efforts to rebalance supply.
Last week’s U.S. oil rig count from Baker Hughes, Inc. showed that the number of active oil rigs increased by 12, raising the total to 759. For drivers, the crude price rally could mean even higher pump prices in the near future.
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.
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