Gas prices in the Mid-Atlantic and Northeast continue to drop with Virginia, New Jersey, and Delaware now below $2 per gallon.
The national average price for regular unleaded gasoline has declined to $2.12 per gallon, which is the lowest level in more than 100 days and the lowest price for this date since 2004. Today’s price is two cents less than one week ago, 14 cents less than one month ago and 50 cents less than the same date last year.
“As summer rolls on, gas prices across most of the country and the Mid-Atlantic continue to slide, which is welcome news for motorists,” said Tammy Arnette, Public Affairs Specialist for AAA Mid-Atlantic. “With gasoline supplies high and oil prices low, pump prices are likely to remain relatively cheap through the remainder of summer’s peak road trip season.”
Despite the lowest seasonal gas prices in more than a decade, unexpected events could trigger higher prices. Rising crude oil costs due to a disruption in supply, stronger than expected economic growth or geopolitical tensions overseas could lead to higher pump prices nationwide, or regional prices could increase due to refinery problems, production cuts, stronger than anticipated demand, or hurricanes that impact distribution and production.
At the close of Friday’s formal trading session on the NYMEX, WTI closed up 20 cents from last week to settle at $41.80 per barrel. WTI dropped below $40 on Tuesday, for the first time since April 18 but remained above $40 the rest of the week. Ample domestic oil supplies and a strengthening U.S. dollar have contributed to the commodity testing lows not seen since spring. WTI is priced in U.S. dollars, so as the dollar strengthens, the price of oil becomes relatively more expensive for those holding foreign currencies. This makes oil a less attractive investment and helps reduce prices.
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Chris Graham
