VIRGINIA BEACH, Va., (December 12, 2016) – Virginia ranks in the top 10 for largest weekly increase in gas prices. Currently gas in Virginia is at $2.11, which is a five cent increase from last week, an eight cent increase from last month, and a 26 cent climb from last year. Locally, Hampton Roads is following this trend with the current average of $2.08 which is three cents more than last week, nine cent more than last month and 26 cents more than last year. Drivers across the Northeast, Mid-Atlantic, Great Lakes and Southern regions all saw increases at the pump due to the increase in crude oil prices.
Last month, OPEC agreed to cut output by 1.2 million barrels per day beginning January 2017 and markets have continued to react to the production cut agreement with crude oil prices hitting an 18 month high. Retail prices have steadily increased following the news of the OPEC agreement, but the effectiveness of the deal and continued market impacts will hinge on all countries implementing the agreed to production levels.
Over the weekend, OPEC and non-OPEC producers reached their first deal since 2001 to limit oil output in an effort to reduce global over supply and rebalance the market. Producers from outside the 14-country group agreed to reduce output by 558,000 barrels per day. Of that amount, Russia has agreed to cut 300,000 barrels per day with the remaining non-OPEC members cutting the remaining 258,000 barrels to reach the agreed upon levels. As a result, traders will continue to watch how OPEC and non-OPEC members move forward with the terms of the agreement starting in 2017. At the close of Friday’s formal trading session on the NYMEX, WTI was up 66 cents to settle at $51.50 per barrel.
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