VIRGINIA BEACH, VA (January 6, 2020) – The price for gas in the Commonwealth has remained steady despite the unrest in Iran. Today’s gas price in Virginia is $2.39, which is only eight cents more than last month, but a 36-cent increase from the same time last year. In the Hampton Roads area, the average price for gas is 9 cents more than last month and a 38-cent difference from last year.
The national gas price average held steady for the week at $2.58, but that could change depending on the movement of crude oil prices due to geopolitical concerns. Following airstrikes in Baghdad last Friday killing Iran’s top military leader, Major General Qassem Soleimani, crude oil prices increased, causing market speculation about what could happen to gas prices in the near-term.
“It’s typical to see crude oil prices become more expensive amid current events,” said Holly Dalby, spokesperson for AAA Tidewater Virginia. “What this increase means in terms of retail prices is yet to be seen. It depends on how high crude oil prices go and the duration at which it sells at a higher price point in the market.”
At the close of Friday’s formal trading session on the NYMEX, WTI increased by $1.87 to settle at $63.05. Crude prices increased last week after the U.S. announced that it conducted a drone strike at an airport in Baghdad and killed Major General Qassem Soleimani. The incident has escalated tension in the region, raising the possibility that global crude supplies could be disrupted. As market concerns over geopolitical risk increase, crude prices have increased amid uncertainty over how long tensions may continue to rise in the region. Crude prices may rise further this week if tensions continue to mount. AAA will continue to monitor the market to see the impact in the days ahead.
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.