VIRGINIA BEACH, VA (June 10, 2019) – Gas prices have been steadily dropping across the Commonwealth, marking the state as one of the least expensive for pump prices, nationally. Today’s gas price in Virginia is $2.49 which is six cents less than last week, 13 cents lower than last month and a 21-cent dropped from last year. In Hampton Roads, gas prices reflect a similar trend with the current average at $2.50, which is a six cent drop from last week, a 13-cent decrease from last month, and 22 cents less than last year. Nearly every state’s gas price average is cheaper than a week ago, a month ago and a year ago. Today’s national average is $2.74, which is seven-cents cheaper than last week, 13-cents less than a month ago and 18 cents cheaper than a year ago.
“Prices are dropping due to cheaper crude oil and at the same time U.S. supply is keeping pace with demand,” said Georjeane Blumling, spokesperson for AAA Tidewater Virginia. “The continued drop in gas prices may be an indication that pump prices could be even cheaper this summer.”
For the last three weeks demand has remained relatively robust at 9.4 million b/d. Meanwhile, gasoline stocks have increased weekly with total inventories at nearly 4 million bbl ahead of the five-year average, according to Energy Information Administration (EIA) data. up for a second week to nearly 94%. These moves will help to keep gas prices stable, but more likely will push them cheaper in the month ahead.
The price increase followed a week of losses for crude due to EIA’s weekly petroleum status report showing that total domestic crude inventories rose by 6.8 million bbl last week. At 483.3 million bbl, the current level is 46.7 million bbl higher than last year's level at this time. An oversupply of crude has increased concerns that the market has a glut of oil – even as U.S.-imposed sanctions on Iran and Venezuela have worked to reduce global supply. Market observers will await OPEC’s meeting to determine how much global crude supplies may tighten further. If the glut persists, crude prices will likely continue to descend. At the close of Friday’s formal trading session on the NYMEX, WTI increased by $1.40 to settle at $53.99.
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.