Virginia Gas Prices Remain Steady as Crude Oil Prices Climb

VIRGINIA BEACH, VA. (June 7, 2021) – Prices at the pump remain steady in Virginia at $2.93, despite the price for crude oil rising. Prices are poised to fluctuate in the coming week, especially in light of a recent drop in demand. The Energy Information Administration (EIA) reported demand decreased from 9.48 million b/d to 9.15 million b/d for the week ending May 28. During the same week, total gasoline stocks increased to nearly 234 million bbl as U.S. refinery utilization jumped to 88.7%—the highest rate since February 2020.

“We expect this week’s demand number to increase as it will reflect Memorial Day holiday weekend travel, but it’s not likely to lead to an increase in gas prices for the majority of motorists,” said Holly Dalby, spokesperson for AAA Tidewater Virginia. “However, crude oil is on the rise and could prop up pump prices.”

To help gauge pump price fluctuation later this summer, AAA is tracking two additional factors: crude oil prices and global supply. Last week, crude prices increased to their highest price point ($69/bbl) in 2.5 years. Since crude accounts for more than 50% of the price at the pump, when it goes up, so does the price motorists pay. What is promising is that crude may not sustain at this level. The Organization of the Petroleum Exporting Countries (OPEC), and its allies including Russia, announced last week they still plan to gradually increase crude production in July. If they do increase production, this could lead to a decrease in crude oil prices, which is good news for motorists.

At the close of Friday’s formal trading session, WTI increased by 81 cents to settle at $69.62. OPEC’s efforts to hold its production agreement in place bolstered prices last week. The move could help reduce pump prices later this summer, but the amount of the price reduction will depend on how well OPEC and its allies adhere to their agreement and if the additional production is not met with higher demand. OPEC and its allies will meet again on July 1 to review their production agreement.

As part of North America’s largest motoring and leisure travel organization, AAA Tidewater Virginia provides its more than 350,000 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.