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AAA: Gas prices holding steady in Virginia, Mid-Atlantic

Gas prices around the Mid-Atlantic region stalled this week after rising slightly the week before. The same can be said of the national average for a gallon of regular gasoline.

gas pricesToday’s price of $2.25 is a penny less than last week, six cents less than last month and three cents higher than last year. Gas prices are still at some of the cheapest prices seen this year, but consumers could still see a slight price increase throughout July, especially if there was a major hurricane in the Gulf of Mexico.

“Drivers saw a slight jump in prices at the pump this past week due to increased demand resulting from cheaper prices than usual for the summer driving season,” said Tammy Arnette, Senior Specialist of Public and Government Affairs for AAA Mid-Atlantic. “Just how far those price increases will extend may depend on the outcome of OPEC’s efforts to further constrain the global supply of crude oil.”

At the close of NYMEX trading Friday, WTI crude oil increased $2.31 on the week to settle at $46.54. Oil production remains strong, with U.S production up by 59,000 barrels a day last week. In a separate monthly report Tuesday, the EIA said annual U. S. production is still on pace to reach a record in 2018. Meanwhile, the International Energy Agency (IEA) said the oil market could stay oversupplied for longer than expected due to rising production and limited output cuts by some OPEC exporters.

Wednesday’s monthly report from the Organization of the Petroleum Exporting Countries (OPEC) showed that global oil supply rose by 660,000 barrels a day compared with a month earlier and OPEC member crude production increased by 393,000 barrels a day from May, with higher output from Libya, Nigeria, Angola, Iraq and Saudi Arabia. OPEC and top nonmembers will meet in Russia on July 24 to discuss the effectiveness of the oil production cuts made months ago.

   
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