VIRGINIA BEACH, VA (January 3, 2019) – A New Year’s gas price to celebrate! Gas prices are the cheapest that they have been since December of 2016 in the Commonwealth. Virginia is currently at $2.05, 22 cents less than last month and a 24 cent decrease from last year. Some areas in the Commonwealth are even experiencing gas prices below $2.00. Hampton Roads, for instance, is at $1.97 as of today, 22 cents less than last month, and a 30 cent drop form last year.
“With OPEC production cuts slated to take effect this week, analysts will closely be watching the price of oil,” said Georjeane Blumling, AAA spokesperson. “Significant movement toward higher market prices would mean cheaper gas prices could be in the rearview mirror. However, AAA expects to see minimal volatility at the start of the cartel’s production cuts.”
The end of 2018 drove WTI crude oil prices to as low as $44/bbl, which is a steep $31 drop from the high of $77/bbl seen during June.
At the close of Wednesday’s formal trading session on the NYMEX, WTI increased $1.13 to settle at $46.54. Oil prices mostly fell last week, as market observers continue to believe that the global crude market is over-supplied. Moreover, new concerns are growing of a potential economic slowdown in 2019 that could lead to a decline in global demand for crude. However, recent price gains in the market underscore how volatile the market is now, which could lead crude prices higher if global supply tightens amid robust demand for crude. For now, new reports indicate that the U.S., Russia and Iraq, the second largest producer in the Organization of the Petroleum Exporting Countries (OPEC), saw crude production and export increases in the final months of 2018, contributing to the falling price of crude.
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.