VIRGINIA BEACH, VA (March 26, 2018) - With the arrival of spring, gas prices immediately became more expensive nationwide. The national gas price average is $2.61, which is a nickel more expensive on the week. While some states are seeing double-digit increases, Virginia is one of the more fortunate states that are still in the single digits with a nine cent increase from last week and a current average at $2.43. However, some areas in the Commonwealth are feeling the sting, Hampton Roads price is at $2.47 today which is a 12 cent increase from last week and a 19 cent increase from last month.
Six states are seeing double-digit increases: Idaho (+16 cents), Utah (+14 cents), Delaware (+13 cents), New Mexico (+12 cents), South Carolina (+10 cents) and Maryland (+10 cents). As prices soar, the Energy Information Administration (EIA) reports that demand dropped to 9.3 million b/d as gasoline stocks dipped (1.7 million b/d) on the week.
“Right now we are seeing the market starting to purge winter-blend gasoline to make room for summer-blend,” said Georjeane Blumling, AAA spokesperson. “The jump in gas prices is just the beginning for the season AAA forecasts that gas prices will continue to rise.”
Today’s national gas price average ($2.61) is nine cents more than a month ago and 33 cents more expensive than this time last year.
At the close of Friday’s formal trading session on the NYMEX, WTI increased $1.58 to settle at $65.88. The futures market for crude oil rallied last week after EIA's report revealed crude inventories fell for the third consecutive week. This year-over-year change could be attributed to higher than usual gasoline demand in the U.S. for this time of the year, which has also coincided with growing crude and gasoline exports from the U.S.
The lowering crude data also signaled that OPEC’s production reduction agreement with other large producers, including Russia, is helping to drain global crude supplies and lift the price per barrel. The reduction agreement will be in effect through the end of 2018, and it may extend into 2019. An extension of the current agreement would likely push prices up and supplies down further.
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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