Demand for Gasoline Hits Two Year Low, Pushing Pump Prices Even Cheaper in Virginia

hand at gas pump

VIRGINIA BEACH, VA (January 7, 2019) – Virginia gas prices continue to decline, lowest since 2016. With today’s average price of gas in the Commonwealth at $2.03, motorists are paying 21 cents less than last month and 27 cents cheaper than last year. Hampton Roads is seeing less than $2 a gallon with the current price at $1.95, a 20 cent decline from last month and 33 cents less than last year. Richmond is experiencing similar gas prices as the seven cities with the current average at $1.94. Nationally, gas prices are averaging $2.24, a steady drop for 12 weeks in a row.   

 

According to the latest Energy Information Administration (EIA) data registers gasoline demand at 8.6 million b/d for the week ending December 28 – the lowest level on record since February 2017. Despite record motor vehicle travel for the holiday, demand was down nearly 900,000 bbl, suggesting that demand this winter could be lower than expected.

 

“As the global crude market continues to be oversupplied, oil prices are dropping, continuing last week’s trend,” said Georjeane Blumling, spokesperson for AAA Tidewater Virginia. “This is good news for motorists filling up at the pump.“

 

At the close of Friday’s formal trading session on the NYMEX, WTI increased 87 cents to settle at $47.96. Oil prices were volatile last week, as market observers continue to believe that the global crude market is oversupplied. Moreover, analysts are also wary of the impact a potential economic slowdown in 2019 could have on global crude oil demand. In the coming weeks, market observers will look for indications that OPEC’s global pact with large non-OPEC crude producers (including Russia) will reduce crude production by 1.2 million b/d for at least the first six months of 2019, which may help reduce the growing global glut of crude. In turn, this could drive up crude oil prices and, subsequently, gas prices.

 

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.