Gas prices in Delaware rose slightly during the week as the impact of likely OPEC production cuts continued to be felt.
OPWX elected to cut its collective production when the group met Nov. 30 in an effort to rebalance the global oil supply and raise prices.
Markets reacted quickly to the production agreement, leading to increased retail prices. The deal is set to take effect in January 2017.
CURRENT AND PAST GAS PRICE AVERAGES
Regular Unleaded Gasoline (*indicates record high)
| 12/11/2016 | Week Ago | Year Ago | |
| National | $2.21 | $2.18 | $2.01 |
| Pennsylvania | $2.42 | $2.39 | $2.24 |
| Philadelphia (5-county) | $2.42 | $2.40 | $2.27 |
| South Jersey | $2.27 | $2.25 | $1.87 |
| Wilkes-Barre | $2.44 | $2.41 | $2.26 |
| Delaware | $2.24 | $2.22 | $2.01 |
| Crude Oil |
$51.50 per barrel |
$51.68 per barrel |
$44.95 per barrel |
At the close of Friday’s formal trading session on the NYMEX, West Texas Intermediate crude oil closed down 18 cents from last week to settle at $51.50 per barrel. This price is $6.55 higher than a year ago.
U.S. crude oil imports were up by 755,000 barrels per day from the previous week. Over the last four weeks, crude oil imports averaged about 8 million barrels per day, 5.9 percent above the same four-week period last year. West Texas Intermediate (WTI) crude oil prices are expected to average $51 per barrel in 2017.
“Crude oil prices continue to climb following market reaction to the OPEC agreement,” said Jana L. Tidwell, manager of Public and Government Affairs for AAA Mid-Atlantic. “Time will tell how long the trend of higher oil prices will continue and whether the OPEC agreement is fully carried out in January.”
OPEC and non-OPEC members, such as Russia, met again in Vienna on Dec. 10 to focus on additional production limits. As a result, a deal was reached to curtail oil output and ease a global glut after more than two years of low prices.
Oil prices had slumped to a 13-year low of $26.21 per barrel on Feb. 11 of this year, from a peak of more than $100 in June of 2014. Prices later hovered in the 40s as drilling activity slowed down in the U.S.
Earlier in the week, Bank of America Merrill Lynch (BAML) said that the latest agreement by OPEC to cut production will likely turn the global oil balance into a deficit as early as the first quarter of next year.
That would lead to higher prices and possible turmoil in futures markets.
The weekly report from AAA Atlantic showed gas prices were six cents higher in southern New Jersey when compared to Delaware.
Delaware has the lowest gas taxes in the region as other states tapped into the revenue source to fund highway projects. Thanks to increases in vehicle fees, Delaware is not expected to not need additional revenue for a few more years.
Thanks to increases in vehicle fees, Delaware is not expected to not need additional revenue for a few more years. Long-term issues affecting gas tax revenues will include more fuel efficient vehicles.
Long-term issues affecting gas tax revenues will include more fuel efficient vehicles and gradual growth in electric cars and trucks.
To check out prices in your neighborhood, check out the Fuel Price Finder (http://www.AAA.com/fuelfinder).
