AAA: Gas prices dropping heading into Thanksgiving

As more than 43 million Americans plan to hit the road for Thanksgiving, lower gas prices are on the menu.

The same can be said for the Mid-Atlantic region as local gas prices are following the national trend downward. The average price for a gallon of gasoline in Virginia dipped below $2 per gallon to $1.99 per gallon Friday and will likely continue to fall as we head into the upcoming Thanksgiving holiday.

“Virginia drivers have a lot to be thankful for this year, as gas prices are falling heading into the Thanksgiving holiday,” says Tammy Arnette, Senior Public Affairs Specialist for AAA Mid-Atlantic.  “Historically, gasoline demand tends to decline during the month of November, and with the autumn refinery maintenance season nearing completion, pump prices are expected to move lower to close out the year.”

Today’s national average price of $2.14 per gallon is three cents less per gallon than one week ago and nine cents less than one month ago. The abundance of crude oil in the global market is contributing to lower prices, and as a result, retail averages are four cents higher as compared to one year ago.

The Northeast is expected to receive a large import of gasoline from Europe during the second half of the month which should help boost supplies following the six-day shutdown of Colonial Pipeline earlier this month. Pump prices in the regions should continue to drop heading into the holiday season.

At the close of Friday’s formal trading session on the NYMEX, West Texas Intermediate (WTI) crude oil closed up $2.28 from last week to settle at $45.69 per barrel. Crude oil had an up and down week.  Tuesday WTI made its biggest one-day advance ($2.49/barrel to $45.81) since Feb. 12. Then, on Thursday, crude oil futures dropped after official inventory reports indicated a larger-than-expected build in U.S. oil stocks.

It has been reported that OPEC countries are ready to reach a “forceful” agreement on cutting oil output and are due to meet on Nov. 30. Decisions made at the formal meeting may impact available crude levels and in turn be reflected in retail prices.