VIRGINIA BEACH, VA. (July 30, 2018) - As U.S. gasoline demand strengthened and supply declined, the national gas price average jumped two-cents on the week to land at $2.86. However, Virginia remains one of the lower priced states with the current average price at $2.61, a full 25 cents cheaper than the national average. Gas prices have remained steady in the Commonwealth throughout the month of July, despite surrounding states being higher.
“Virginia could see gas prices begin to rise as crude and gasoline inventories tighten,” said Georjeane Blumling, Vice President of Public Affairs for AAA Tidewater Virginia. “On the week, pump prices have increased a penny in Virginia where some states are seeing an 11 cent uptick in gas prices.”
While today’s gas price average is one cent less than last month, it is 52 cents more than a year ago and crude oil prices are up $20/bbl compared to this time last year.
At the close of Friday’s formal trading session on the NYMEX, WTI decreased 92 cents to settle at $68.69. Oil prices trended higher with the release of EIA's weekly report that total crude inventories fell by 6.2 million bbl and face a year-over-year deficit of 80 million bbl. The tightened domestic crude supply amid robust global gasoline demand and high global crude demand will likely sustain into the near future the more expensive crude oil prices, which are $20/bbl more compared to last year.
Additionally, the market will look at EIA’s supply data and July crude production data from OPEC and its partners — both of which will be released later this week — to determine how supply and demand are faring since the cartel announced that it would increase production to ease global crude price growth. Moreover, according to Baker Hughes, Inc., the U.S. added three oil rigs last week, bringing the total to 861. Currently, there are 95 more active rigs this year than last year at this time.
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.