Gas demand last week was near an all-time record high according to the Energy Information Administration. The boost in demand and drop in inventory have driven the national gas price average to $2.87, which is the most expensive gas price seen in August since 2014.
Virginia gas prices are $2.63 per gallon on average and currently 6th lowest in the country to buy gasoline.
“Gas prices continue to rise and we will likely see them inch even further throughout the month of August,” said Tammy Arnette, Senior Public Affairs Specialist. “Even with rising gas prices, Virginia drivers are currently paying some of the lowest prices at the pump as Virginia is 6th lowest in the country to buy gasoline”
While today’s gas price average is one-cent more than last week, it is the same price as one month ago, yet 52-cents more than this time last year.
At the close of Friday’s formal trading session on the NYMEX, WTI dropped 47 cents to settle at $68.49. Oil prices made some gains last week, but are ending at a loss after EIA reported that total oil inventories across the country grew by 5.6 million bbl last week. The build in crude stocks was supported by crude exports falling to 1.31 million b/d.
Crude price losses may not extend into this week as global supply concerns re-emerge. One concern is that based on recent reports, Saudi Arabia’s crude output unexpectedly fell 200,000 b/d to 10.3 million b/d last month. Saudi Arabia is the largest producer in OPEC, so a drop in its production means that the planned increase in crude production that the cartel and its partners announced in June may be moving slower than expected. Additionally, an announcement on U.S.-imposed sanctions against Iran is expected early this week, which could heighten geopolitical concerns in the crude market.
In related news, according to Baker Hughes, Inc., the U.S. lost two oil rigs last week, bringing the total to 859. Currently, there are 94 more active rigs this year than last year at this time.
Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.
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