VIRGINIA BEACH, VA (June 11, 2018) – Today’s gas prices in Virginia, at $2.70 per gallon, take a four cent dip from last week as U.S demand continues to decline. While this is good news, it is still 58 cents more than last year at this time. Hampton Roads gas prices dropped even more than Virginia’s average with a five cent drop from last week, and a current average at $2.72. If inventories continue to increase sustainably, motorists could see some relief at the pump.
Gasoline inventories bumped up to 82 million bbl following this week’s 3 million bbl add, according to EIA’s latest report. This is the highest build for any region on the week and puts a 12 million bbl difference between the South and Southeast and the Mid-Atlantic and Northeast, the region with the second highest inventory in the country.
“Gas prices continue to dip across the Commonwealth, but remain more expensive than last summer,” said Georjeane Blumling, Vice President of Public Affairs for AAA Tidewater Virginia. “This year’s higher prices seem to be influencing driving habits. While consumer gasoline demand remains strong, it is slowing and not growing.”
At the close of Friday’s formal trading session on the NYMEX, WTI decreased 21 cents to settle at $65.74. Oil prices trended marginally lower last week following EIA’s report that crude production hit 10.8 million b/d last week. The estimate sets another weekly domestic record, which has been a reoccurring phenomenon in 2018. When compared to last year at this time, the U.S. is producing roughly 1.5 million b/d more this year.
Oil prices will continue to be volatile this week. Contributing factors include reports that OPEC may not announce an increase in crude production at the next OPEC meeting scheduled for June 22 in Vienna, Austria. Prior to Memorial Day reports speculated that OPEC would increase production, which contributed to oil prices going down. In addition, economic turmoil in Venezuela has reduced the major global crude supplier’s production rates at a time when global supply is already shrinking.
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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