Like most parts of the country, drivers in the Mid-Atlantic and Northeast are seeing gas prices continue to drop as regional gasoline supplies out pace demand.
“Just two weeks ahead of the Memorial Day weekend, gas prices continue to take an unseasonal dip,” said Tammy Arnette, Senior Public Affairs Specialist for AAA Mid-Atlantic. “Oversupply and low crude oil prices are keeping prices at the pump somewhat low for this time of year, ahead of the summer driving season’s demand for fuel.”
At the close of NYMEX trading Friday, WTI crude oil increased $1.62 to settle at $47.84. Despite crude oil prices remaining below the $50 benchmark, WTI saw a more-than three percent increase mid-week, the biggest jump since December, yet prices remain below year-ago levels.
There is speculation that OPEC will extend production cuts beyond the June 30 deadline and into 2018, signaling willingness to rebalance the market. Only time will tell if supply restrictions and rising demand will shorten the oversupply – and ultimately lead to higher retail prices at the pump.
Virginia, Maryland and the D.C. Metro Area are all down at least two cents on the week. The trending decline is due to an unseasonable glut of gasoline in the U.S. market, record high refinery production rates, moderate demand and a recent drop in crude oil prices.
Today’s national average price for regular unleaded gasoline is $2.34 per gallon, which is a penny less than one week ago, seven cents lower than one month ago, and 12 cents more than the same date last year.
Whether or not the trending decline of gas prices continues leading up to the Memorial Day holiday weekend remains to be seen. As the seasonal demand for gasoline fuels up with the unofficial start of summer, motorists will be watching and waiting to see if pump prices start to pinch their pocketbooks.
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Chris Graham
