AAA: Multi-week gas price drop continues

Drivers in the Mid-Atlantic region continue to see lower gas prices as the summer driving season accelerates ahead of the Independence Day holiday.

Although crude oil supplies are lower this week, according to the Energy Information Administration (EIA), gasoline supplies are up nationally and on the East Coast. It is uncertain where crude oil prices may go, following this week’s decision by the members of OPEC to increase crude oil production.

Today’s national gas price average is $2.85, which is down five cents in the last week, down 11 cents in the last month and 58 cents higher than this time last year.

At the close of NYMEX trading Friday, West Texas Intermediate (WTI) crude oil settled at $68.58 per barrel, up $2.84 from last Friday. The price of crude had been stable for most of the week until news from the OPEC meeting emerged, sending crude prices up more than $3.00 in one day. Members of OPEC met Friday to discuss increasing the amount of crude produced by its members and ultimately decided to increase production by one million barrels per day.  The actual increase will likely be around 600,000 to 700,000 barrels per day, as some members are unable to boost production. This increase may be short of implied world demand, potentially causing crude prices to increase in the short-term.

“Drivers are enjoying another week of lower prices at the pump due to crude oil prices staying static most of the week,” said Tammy Arnette, senior public affairs specialist for AAA Mid-Atlantic. “Analysts have been awaiting the outcome of the OPEC meeting and will pay very close attention to see the effect it has on crude prices in the coming weeks. As of Friday, the oil market was rallying, but it may be too early to know if this is the definite direction for the price of crude oil.”

A record-breaking 46.9 million Americans will travel 50 miles or more away from home this Independence Day holiday, an increase of more than five percent compared with last year and the highest number since AAA started tracking 18 years ago. For the 39.7 million Americans planning a Fourth of July road trip, higher gas prices are not standing in the way.

• Automobiles: The vast majority of travelers – 39.7 million – will hit the road this Independence Day, 5.1 percent more than last year.
• Planes: A record-breaking 3.8 million people will travel by air, a 7.9 percent increase and the ninth year of consecutive air travel volume increases.
• Trains, Buses and Cruise Ships: Travel across these sectors will increase by 5.8 percent to a total of 3.5 million passengers.

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

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