Oil prices continued their 14-month drop last week as the price dropped by more than a nickel during the past week.
The national average price is $1.90, down 7 cents from last week, down 11 cents from last month and down 18 cents from last year. Gas prices should remain relatively low, due to abundant supplies, Wilmington-based AAA Mid-Atlantic reported.
At the same time, consumers are not over the moon about the lower prices at the pump. A recent survey by the National Association of Convenience Stores, retail gasoline prices largely below $2 gallon has not fostered any new enthusiasm among American consumers.
AAA reported the average price at the pump in Delaware fell six cents during the week to $1.82 a gallon.
According to the AAA Fuel Finder, the price at the pump fell to as low as $1.65 a gallon along the Capitol Trail/Kirkwood Highway area east of Newark. Prices fell as low as $1.72 a gallon in Dover and $1.82 in Lewes.
The gas price even fell below $2 a gallon on Route 202, north of the Delaware line. Pennsylvania has the nation’s highest gas tax.
Seventy-five percent of Americans admitting that gas prices influence their feelings about the economy, although that number is down 10 points from Jan. 14, 2015 when gas prices were about $1.50 a gallon higher.
A sharp drop in the stock market might also curb the enthusiasm among drivers. Problems with the Chinese economy and the sharp slide in oil prices have contributed to an 8 percent drop in the Dow Jones index this year. China is a major oil importer.
West Texas Intermediate Crude closed out Friday’s formal trading session on the NYMEX down $3.74, settling at $29.42 per barrel.
Expectations that prices will continue to hover at levels last seen more than a decade ago are beginning to surface and market watchers are paying close attention to both China and the Middle East. Crude settled below the $30 per barrel mark and dipped into the $20 per barrel range during intra-day trading mid-week. The last time crude oil closed below $20 per barrel was October 31, 2003.
“AAA predicts pump prices will remain relatively low due to the over-abundance of oil and gasoline around the world to meet demand,” said Jana L. Tidwell, manager of Public and Government Affairs for AAA Mid-Atlantic. “As crude oil prices continue to drop, motorists will undoubtedly continue to enjoy savings at the gas pumps.”
The U.S. Energy Information Administration (EIA) expects monthly retail prices of U.S. regular gasoline to reach a seven-year low of $1.90 a gallon in February 2016, before rising during the spring.
