VIRGINIA BEACH, VA (October 22, 2018) – While leaves are starting to fall across the Commonwealth, gas prices are dropping too. Currently, the average price for gas in the Commonwealth is $2.63 which is four cents less than last week, but still a 38 cent increase from last year’s prices. In Hampton Roads gas prices are even cheaper at $2.57, a six cent drop from last week and 40 cent difference from the year before.
The national gas price average is $2.85. That is six-cents cheaper than this month’s highest price of $2.91, which was the most expensive average during the month of October since 2014. Today’s price is also four cents cheaper than last week, the same price as last month and 39- cent more than this time last year.
Reduced refinery runs, due to peak maintenance season, have contributed to stable gasoline inventories amid lower demand, which is a contributing factor driving gas prices down.
“Motorists across the country are seeing gas prices more than a dime cheaper than last week,” said Georjeane Blumling, spokesperson for AAA Tidewater Virginia. “Prices are falling despite market concerns about global supply and geopolitical tensions, but that could change later this month ahead of the U.S. announcement of imposed sanctions on Iran.”
At the close of Friday’s formal trading session on the NYMEX, WTI increased 47 cents to settle at $69.12. The crude market mostly saw losses last week following EIA’s latest weekly petroleum report, which showed domestic crude inventories grew by 6.5 million bbl. Total crude inventories now sit at 416.4 million bbl, marking the fourth week of consecutive growth and highest level since late June. The larger-than-expected growth in crude levels shocked the market, leading crude prices to fall. This week, prices could rise again due to concerns about U.S.-Saudi Arabia relations and upcoming U.S.-imposed sanctions on Iran’s crude exports.
In related news, Baker Hughes, Inc. reported that the U.S. gained four oil rigs last week, bringing the total to 873. When compared to last year at this time, there are 137 more rigs now than in 2017.
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.