VIRGINIA BEACH, VA (November 5, 2018) – Leaves are not the only thing falling as gas prices in the Commonwealth continue to drop. Virginia ranks 10th least expensive average gas price in the nation for another week. Currently, the average price for gas in the state is $2.52 which is a six cent decrease from last week and 15 cents less than last month. In Hampton roads, gas prices are even cheaper at $2.45 per gallon of regular gas, seven cents more than last week and a 19 cent increase from last month. At $2.76, the national gas price average is at its cheapest in six months (end of April). Today’s national average is six cents less than a week ago,15-cents less than a month ago but 24-cents more than a year ago. As demand continues to drop, gas prices could get even cheaper.
This price drop is happening at a time that analysts previously thought would likely see pump price increases due to the White House’s re-imposition of sanctions on Iran, some of which will target the country’s energy sector and impedes its ability to export oil. However, in May, when the decision was announced (to take effect in November), the market reacted quickly with crude oil prices (WTI) spiking as high as $77/bbl this summer. At the same time, Iran’s exports began to dip. Today, they are reported to be about one million b/d less than in May while crude oil prices have stayed below $70/bbl for two weeks.
“With the market anticipating and reacting to the pending Iran sanctions throughout the summer, motorists likely have seen the worst in terms of retail prices for the year,” said Georjeane Blumling, AAA Tidewater Virginia’s spokesperson. “If the crude oil market remains steady, gas prices are likely to continue to fall as much as ten cents in the near-term.”
At the close of Friday’s formal trading session on the NYMEX, WTI dropped 55 cents to settle at $63.14. Oil prices moved lower last week as total domestic crude inventories grew by 3.2 million bbl last week, according to the EIA’s latest weekly petroleum status report. Steady growth, for the sixth consecutive week, in crude inventories has helped to check excessive increases in crude prices. Moreover, re-imposed sanctions on Iran’s crude exports have not ignited fears in the market about constrained global supply this winter, since the U.S. will reportedly issue eight waivers that allow some of Iran’s top export destinations to continue importing its oil. Oil prices could remain flat or continue falling this week due to reduced concerns about a global crude supply shortage as a result of the sanctions.
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.