AAA: Gas prices heating up with summer

Drivers across the Mid-Atlantic have watched gas prices increase by a penny or two in the last week during the Independence Day holiday travel period.

The national average price for a gallon of gas rose to $2.86 as the Independence Day holiday kicked off, up 60 cents over last year.  Despite the year-over-year increase, prices remain 80 cents lower than 2014 when the average price was $3.66.

Today’s national gas price average is $2.87, which is up two cents in the last week, down five cents in the last month, yet 61 cents higher than this time last year.

“Drivers should prepare themselves for the possibility of higher prices at the pump in the coming weeks,” said Tammy Arnette, senior public affairs specialist for AAA Mid-Atlantic. “AAA expects to see the national average for a gallon of gasoline head toward $3 as factors, including a shrinking global crude oil supply, continuing summer driving demand for gasoline and sanctions being placed on Iran create an unpredictable market.”

At the close of NYMEX trading Friday, West Texas Intermediate (WTI) crude oil settled at $73.80 per barrel, down 35 cents from last Friday. The Energy Information Administration (EIA) reports that crude oil supplies surprisingly increased last week while gasoline supplies decreased. Analysts continue to watch the price of crude oil as it continues to remain above the $70 mark for another week.  Geopolitical issues are cited for fueling the increase in crude oil prices, including the U.S.’s decision to exit from the Iran nuclear accord and the administration’s demands that countries reject purchases of Iranian oil. This week, Iran threatened to block oil shipments if the U.S. continued to seek renewed sanctions, further pushing prices.

The national average price of gasoline remains at its highest level for this time of year since 2014.  If U.S. demand remains strong, domestic and global supply decline and crude inventories continues to sell over $70 per barrel, motorists may see the national gas prices average to potentially jump back up to nearly $3 a gallon in coming months.

AAA has a variety of resources to help motorists save on fuel:

• Fuel Price Finder (http://www.AAA.com/fuelfinder) locates the lowest fuel price in your area.
• AAA Gas Cost Calculator (http://gasprices.aaa.com/aaa-gas-cost-calculator/) helps budget travel expenses.
• TripTik Mobile (http://www.aaa.com/mobile) plots fuel prices along your travel route.
• AAA’s Member Rewards Visa® Credit Card (http://www.AAA.com/financial/AAAvisa.htm) accumulates double points on fuel purchases.