Gas prices dropped a couple of pennies in Delaware as refiners prepared to produce more expensive summer fuel.
Gasoline inventories nationally decreased by 2.8 million barrels to 243.5 million barrels, 0.7 percent, lower than a year ago but near the upper half of the average range for this time of year, according to Wilmington-based AAA Mid-Atlantic.
Nationally, pump prices remain relatively stable, with today’s national average price for regular unleaded gasoline holding at $2.29 per gallon. Drivers are paying 25 cents more per gallon at the pump compared to this same date last year.
CURRENT AND PAST GAS PRICE AVERAGES
Regular Unleaded Gasoline (*indicates record high)
| 3/26/2017 | Week Ago | Year Ago | |
| National | $2.29 | $2.29 | $2.04 |
| Pennsylvania | $2.48 | $2.49 | $2.14 |
| Philadelphia (5-county) | $2.46 | $2.46 | $2.13 |
| South Jersey | $2.23 | $2.22 | $1.78 |
| Wilkes-Barre | $2.48 | $2.50 | $2.17 |
| Delaware | $2.20 | $2.22 | $1.94 |
| Crude Oil |
$47.97 per barrel |
$48.78 per barrel |
$44.56 per barrel |
At the close of Friday’s formal trading session on the NYMEX, West Texas Intermediate (WTI) crude oil was down 81 cents from last week to settle at $47.97 per barrel.
While prices have been trading below $50 per barrel for the past two weeks, speculation about the balance between OPEC cuts and U.S. production drives the market.
Following OPEC’s latest Joint Technical Committee (JTC) meeting, Russia agreed to drop total production by 300,000 barrels per day by the end of April and pledged to maintain that level until the deal expires at the end of June.
Saudi Arabia followed the compliance meeting with news that it may consider working with partner countries to continue the cuts beyond the June agreement deadline.
“The delayed seasonal rise in gas prices has meant another week of relatively flat prices at the pump,” said Jana L. Tidwell, manager of Public and Government Affairs for AAA Mid-Atlantic. “Domestic crude oil inventories are at record levels, while the price of crude remains below the $49 mark.”
Even with OPEC’s compliance in the 90 percent range, U.S. production continues to cut into any rebalancing efforts by OPEC and non-OPEC countries. Traders will continue to watch whether OPEC and non-OPEC members make moves to further cut production in an attempt to balance the global oil supply. In addition, the switchover to summer-blended gasoline will hit gas pumps across the region in the coming weeks, likely pushing prices up.
According to industry analysts, Saudi Arabia originally wanted to drive down prices in hopes of curbing U.S. production of higher-cost oil and retaining market share.
While some small producers went bankrupt, the industry found ways to cut costs and stepped up exploration. The Saudis then agreed to OPEC production cuts.
Still, the switchover to summer-blended gasoline will hit gas pumps across the region in the coming weeks, likely pushing prices up.
In northern Delaware, BJ’s Wholesale Club continued to be the price leader, with its Elsmere pumps offering gas at $2.06 a gallon.
To find out the price in your neighborhood, AAA Mid-Atlantic offers a fuel price finder (http://www.AAA.com/fuelfinder).
