Delaware gas station operators wasted no time in hiking gas prices after OPECs move, according to the weekly report of Wilmington-based AAA Mid-Atlantic.
The oil group agreed to cut production effective, Jan. 1
Nationally, today’s average price of $2.18 per gallon is up five cents per gallon for the week, four cents below the last month and is 13 cents more compared to a year ago.
By contrast, gas prices in southern New Jersey were only a few cents higher than in Delaware, despite a recent 23-cent-a-gallon hike in the gas tax. The lowest price in the state, according to the GasBuddy.com website came at the BJ’s Wholesale Club in New Castle at $2.03 a gallon.
The average price at the pump in Delaware is now four cents a gallon is higher than the national figure.
CURRENT AND PAST GAS PRICE AVERAGES
Regular Unleaded Gasoline (*indicates record high)
| 12/4/2016 | Week Ago | Year Ago | |
| National | $2.18 | $2.13 | $2.05 |
| Pennsylvania | $2.39 | $2.35 | $2.28 |
| Philadelphia (5-county) | $2.40 | $2.33 | $2.31 |
| South Jersey | $2.25 | $2.14 | $1.92 |
| Wilkes-Barre | $2.41 | $2.40 | $2.29 |
| Delaware | $2.22 | $2.11 | $2.10 |
| Crude Oil |
$51.68 per barrel |
$46.06 per barrel |
$47.74 per barrel |
At the close of Friday’s formal trading session, West Texas Intermediate (WTI) crude oil closed up $5.62 from last week to settle at $51.68 per barrel.
Following OPEC’s announcement to cut oil production worldwide by 1.2 million barrels a day beginning January 1, 2017, markets reacted quickly, with crude oil prices increasing by almost 10 percent.
U.S. crude and refined product futures traded higher the morning after the announcement, extending the previous session’s biggest daily price gain in more than four years.
The last formal production cut took place eight years ago. “Prior to the OPEC agreement, there was speculation that retail gas prices could drop below the $2 mark in some areas,” said Jana L. Tidwell, manager of public and government affairs for AAA Mid-Atlantic. “Although demand for gasoline remains relatively flat and inventories have grown over the past few weeks, the path to seeing pump prices at $2 again may take a while longer to reach.”
OPEC decided to cut oil production to rebalance the oil market as a result of the glut in the global oil supply that has pressured oil prices lower the last few years.
However, it remains to be seen how closely the members of OPEC will follow the proposed rate cuts and how much of an impact that will have on rebalancing the glutted global oil market.
Non-OPEC nations that are not voluntarily participating in the agreement will not be cutting back on production and could negate the agreement’s goal.
U.S. crude oil production may rev up as well in replacing the reduced oil supply.
Motorists looking for prices in their neighborhood can check AAA’s Fuel Price Finder (http://www.AAA.com/fuelfinder) locates the lowest fuel price in your area.
