Gas price drop continues, but prices likely to increase in spring

114
Advertisement

Gas prices in Delaware stayed below  the national average down this week. 

The price at the pump for fell four cents during the week to $2.18 a gallon. South Jersey came in not far ahead at $2.25 a gallon, despite a 23-cent jump in its gas tax in November 2016. Pennsylvania topped the field, since it has the highest gas tax in the nation. 

Increased U.S. crude oil production coupled with less driving demand is, at least for now, putting  downward pressure on the commodity. The situation could change in the spring as driving increase and refineries undergo maintenance and conversion to summer fuel 

Wlmington-based AAA Mid-Atlantic noted that in recent weeks the region has experienced higher than normal rainfall levels, a  factor in tkeeping drivers off the road in some of the most densely populated areas along the East Coast.

CURRENT AND PAST GAS PRICE AVERAGES

Advertisement

Regular Unleaded Gasoline (*indicates record high)

  2/5/2017 Week Ago Year Ago
National $2.27 $2.28 $1.76
Pennsylvania $2.55 $2.58 $1.98
Philadelphia (5-county) $2.54 $2.58 $2.01
South Jersey $2.25 $2.29 $1.61
Wilkes-Barre $2.57 $2.59 $1.97
Delaware $2.18 $2.22 $1.76
Crude Oil

$53.83 per barrel
(Fri. 2/3/17 close)

$53.17 per barrel
(Fri. 1/27/16 close)

$41.65 per barrel

At the closing of Friday’s formal trading session on the NYMEX,  West Texas Intermediate Crude  was up 66 cents to settle at $53.83 per barrel.

Increased U.S. oil production continues to offset OPEC’s efforts to rebalance the global oil market. According to Energy Information Administration reports, crude inventories increased by 6.5 million barrels in the week ended Jan. 27, and gasoline inventories rose by 3.9 million barrels last week.

“The slow and steady gas price decline continues across the Mid-Atlantic region,” said Jana L. Tidwell, manager of Public and Government Affairs for AAA Mid-Atlantic. “Drivers are benefitting from lower seasonal demand, along with steady oil prices and growth in U.S. oil production.”

Prices at the pump are expected to remain relatively stable during the remainder of the winter.   However, as spring approaches and more expensive summer blended gasoline enters the market, industry analysts expect gas prices will likely rise to $2.50 to $2.80 per gallon this spring.

Advertisement
Advertisement