After reaching a new high for 2015 last week ($2.80), the national average price for regular unleaded gasoline dropped slightly to $2.78 a gallon late last week, Wilmington-based AAA Mid-Atlantic reported.
This is four cents higher than one month ago, but down sharply from the same period last year when drivers paid 90 cents more a gallon as the July 4th holiday approached.
The average price in Delaware was $2.69 a gallon, 98 cents below the price per gallon paid a year ago at this time.
Crude oil prices moved lower late last week due to a stronger U.S. dollar amid concerns about Greece’s financial instability.
A default or Greece’s exit from the Euro group would likely impact financial markets and could reduce global energy demand, AAA reported.
The Organization of the Petroleum Exporting Countries (OPEC) reported its highest production levels since October 2012, and the U.S. also continues to produce at record.
OPEC member Saudi Arabia is opening the oil spigot in an apparent effort to hold down production in the U.S. from hydraulic fracturing (fracking).
The United States is moving toward the point where it will be self sufficient in oil production, with predictions that some oil will be exported.
AAA reports the global market is likely to remain oversupplied in the near term and any reductions in demand are expected to put downward pressure on price and further contribute to ample supplies.
At the close of Friday’s formal trading, crude oil closed at $59.63 a barrel.
The Energy Information Administration (EIA) noted in its weekly report that crude oil inventories fell 4.9 million barrels to 463 million barrels.
Gasoline stocks saw a 700,000 barrel increase to 218.5 million barrels. Gasoline demand jumped to 9.655 million barrels per day, up 479,000 barrels per day compared to the previous week and 843,000 barrels a day higher than one year ago.
“Despite recent increases in prices at the pump, gas prices remain significantly lower than this time last year, fueling Independence Day travel in the week ahead,” said Jana L. Tidwell, manager of Public and Government Affairs for AAA Mid-Atlantic. “Independence Day gas prices are expected to be the lowest in at least five years, a welcome sign for the 35.5 million people planning a holiday road trip.”
AAA Mid-Atlantic reported nearly 85 percent of travelers (35.5 million) will drive to their Independence Day holiday destinations, an increase of 0.7 percent.
Overall, AAA projects 41.9 million Americans will journey 50 miles or more from home this Independence Day, the most since 2007 and a 0.7 percent increase from the 41.6 million people who traveled last year.
AAA Mid-Atlantic expects the following local travel projections –
Americans who will drive to their holiday destination:
- Nationally – 35.5 million
- Delaware – 97,304
