Despite gasoline demand dropping and inventories growing, the national gas price average has increased three cents on the week to land at $2.88 – a pump price not seen at the national average since mid-July.
While Virginia gas prices are also on the rise, the price of gasoline in the Commonwealth is much cheaper than most of the country as Virginia is the fifth lowest nationwide at $2.62 per gallon.
“This is the time of year we typically see gas prices fall, however with current global supply and demand concerns and higher crude oil prices, motorists are not seeing relief at the pump,” said Tammy Arnette, Senior Public Affairs Specialist for AAA. “The good news for Virginia drivers is even with the current rise in gas prices, Virginia is 5th lowest in the country to buy gasoline.”
Today’s national gas price average ($2.88) is the most expensive for the beginning of October since 2014. The average is four cents more than a month ago and 32 cents more than a year ago.
At the close of Friday’s formal trading session on the NYMEX, WTI increased $1.13 to settle at $73.25. Crude prices rallied last week due to concerns around the impact of U.S.-imposed sanctions on Iran and economic collapse in Venezuela on global crude supply this fall. The increase in crude prices occurred despite crude oil inventories increasing to 396 million bbl last week after five consecutive weeks of decline, according to EIA’s report for the week ending on September 21. Domestic crude inventories are now roughly 75 million bbl lower than were they were at this time last year. The new crude data from EIA will likely leave the market searching for additional evidence of supply constraints, including this week’s EIA report, which could push crude prices even higher this fall.
In related news, Baker Hughes, Inc. reported that the U.S. lost three oil rigs last week, bringing the total to 863. However, when compared to last year at this time, there are 113 more rigs now than in 2017.
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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Chris Graham
