VIRGINIA BEACH, VA (May 7, 2018) – Virginia is holding steady at $2.62 for a week now with only a 15 cent increase from last month but still 46 cents more than last year. In Hampton Roads, today’s average is consistent with the state average at $2.62, well below the national gas price average of $2.81. Nationally, that is 45 cents more expensive than a year ago. With the unofficial kick-off to summer just weeks away, the outlook on gas prices is for them to remain high, but this tapering trend may be a good sign.
“If this past week’s moderate increases are any indicator of what’s to come, the rapid rate at which gas prices were increasing may be slowing down,” said Georjeane Blumling, spokesperson for AAA Tidewater Virginia. “On the week, the national average held steady and 19 state averages remained flat or saw decreases in gas prices. Despite this stability, drivers on the West Coast and in Idaho, Utah and Pennsylvania are paying $3/gallon.”
After a steady decline over the past month, gasoline stocks in the region grew during the week ending on April 27, according to the Energy Information Administration (EIA). At 30.5 million bbl, stocks grew by approximately 1 million bbl. Storage levels are now roughly 500,000 bbl more than the same time last year.
At the close of Friday’s formal trading session on the NYMEX, WTI increased $1.29 cents to settle at $69.72 – a new high for the year. Oil prices ticked up higher last week following reports that President Trump will potentially decline to recertify the Iran nuclear deal on May 12 and may impose new sanctions on the country. Iranian Foreign Minister Mohammad Javad Zarif responded that the country is unwilling to renegotiate the deal it set with the U.S. in 2015 under the Obama Administration. The decision to not recertify the deal could increase tensions in the volatile region, leading to global supply disruptions. Crude prices are likely to continue climbing as the May 12 deadline for the recertifying draws near and it becomes increasingly likely that the U.S. will decline to renew it.
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.