Cheap Crude Oil Paves Way for Significant Savings in Virginia

Gilmore Gas

VIRGINIA BEACH, VA (August 22, 2019) – When filling-up at the pump this fall, many U.S. motorists will find savings of more than 25-cents/gallon compared to this summer and Virginia is no exception! Currently gas prices in the Commonwealth are $2.35, 17 cents less than a month ago and 25 cents lower than last year. This follows the national trend of prices dropping at the pump, which is already 15-cents cheaper than just five weeks ago and is poised to continue pushing downward.  Several factors seem to the cause including less expensive crude oil prices, a drop-off in gasoline demand after Labor Day and the move to winter-blend gasoline.

“AAA predicts that fall gasoline prices will be significantly less expensive than this summer and motorists will be relieved to find savings at the pump,” said Georjeane Blumling, vice president of Public Affairs for AAA Tidewater Virginia. “Many factors are driving this decrease, but the low price of crude oil is chief among them.”

AAA forecasts crude prices to range between $50 and $60 per barrel this fall. That is a considerable drop from last fall when prices ranged between $60 and $75. Why so cheap? Current total domestic crude inventories sit at 438.9 million bbl, which is 31.5 million bbl higher than last year at this time. The continued glut of oil encouraged the Organization of the Petroleum Exporting Countries (OPEC) and its partners to extend their 1.2 million b/d production reduction agreement through the end of the year. However, so far, reduced supply from OPEC and its partners has not led to a sustained higher price for crude.

As always, hurricane season has the potential to cause declining gas prices to shoot back up. This month, the National Oceanic and Atmospheric Administration predicted that 2019’s Atlantic hurricane season is expected to be above normal, with 10 to 17 named storms, including five to nine hurricanes. The mere threat of a hurricane making landfall can shutter domestic crude production, leading to spikes in crude and gasoline prices. In 2017, Hurricane Harvey caused the national gas price average to jump 30-cents in a matter of days.

Boost your Vehicle’s Fuel Efficiency

In addition to cheaper gas prices, there are other ways to save at the pump and boost your vehicle’s fuel efficiency this fall.

According to the AAA Foundation for Traffic Safety, Americans drive an average 11,498 miles per year, and annual per-vehicle gasoline use totals approximately 462 gallons. Poorly maintained vehicles are less efficient and use more fuel. To maintain fuel efficiency for your car, AAA recommends checking the owner’s manual for the recommended maintenance schedule, and keep the following in mind:

  • Perform required maintenance as specified. Keeping tires properly inflated, moving components adequately lubricated, and ignition and emission systems in good operating condition will help ensure maximum fuel efficiency and extend the life of your vehicle.
  • Change engine oil at the intervals indicated by the in-car maintenance reminder system or factory schedule. Use an “energy-conserving” oil that meets the vehicle manufacturer’s specifications.
  • Keep tires inflated at the proper pressure. Use the figures on the tire information decal on the driver’s door jamb — not the one molded into the tire’s sidewall. Under-inflated tires reduce fuel economy and can be a safety hazard.
  • Check the engine air filter at every oil change. A dirty filter won’t affect fuel economy on a modern fuel-injected car, but it will reduce engine performance.
  • Engine spark plugs must be in good condition. Some types last for 100,000 miles, but others need to be replaced more often.