VIRGINIA BEACH, VA (December 11, 2019) – Virginia’s gas prices are slowly dropping with the national average. This is great news going into the holidays. Gas prices in the Commonwealth sit at $2.30, 8 cents higher than last year but two cents lower than last month and a penny cheaper than last week. Across the Nation, the average is $2.57, a penny cheaper on the week. Most states saw minimal movement at the pump in the last week, but several saw decreases of up to four cents and fewer than a dozen states saw an increase.
“Since the end of October, gasoline demand has decreased as gasoline stocks have increased, for the most part, paving the way for cheaper gas prices,” said Georjeane Blumling, spokesperson for AAA Tidewater Virginia. “AAA expects stocks to continue to grow and drive gas prices even cheaper through year-end.”
At the close of Friday’s formal trading session on the NYMEX, WTI increased by 77 cents to settle at $59.20. Crude prices rose after reports emerged that OPEC and its partners announced an agreement to cut crude production by an additional 500,000 b/d to help maintain prices amid market fears of slowing global demand. The new OPEC production reduction agreement brings the total production cut to 1.7 million b/d -- which is about 100,000 b/d more than projected -- beginning on January 1, 2020. The reduction in global crude supply is expected to help drain the market, which will likely be oversupplied during the first half of next year. It is unclear how long the new agreement will be in place, but OPEC will likely review it and announce any amendments at its next meetings on March 5 and 6 in Vienna, Austria.
One other contributing factor, if concerns around global crude demand due to the trade war between China and the U.S. ease this week, crude prices could increase again.
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.
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