Delaware motorists saw gas prices fall again last week as signs indicate that the bottom may be near.
In Delaware, the price at the pump over the past week fell to $1.64 a gallon, from $1.68, Wilmington-based AAA Mid-Atlantic reported.
The AAA Fuel Price Finder (AAA.com/fuelfinder) reported prices have fallen to as low as $1.56 a gallon in the Old Capitol Trail/Kirkwood Highway area.
The national average price of gas did increase last week for the first time in nearly three weeks, but average prices are still at levels not seen since January 2009.
The current national average price of $1.71 represents an increase of a penny per gallon on the week, a decrease of 15 cents per gallon in the month and savings of 57 cents per gallon compared to this same date last year.
At the close of Friday’s formal trading on the NYMEX, West Texas Intermediate crude was up 20 cents on the week, settling at $29.64 per barrel.
Speculation about future supply and demand is contributing to swings in the global price of crude oil. Despite the lower price environment, no large reduction in U.S. production has been reported.
The Energy Information Administration (EIA) cited another effect of decreasing oil prices and increasing inventories of crude oil worldwide – a dip in the price of on-highway diesel fuel. The price of diesel fell below the $2 mark earlier this week for the first time since February 2005.
“The process to bring summer-blend gasoline to market (mandated by the EPA by May 1), in addition to annual refinery maintenance, is beginning to put a damper on the pump price slide throughout the Mid-Atlantic region,” said Jana L. Tidwell, manager of Public and Government Affairs for AAA Mid-Atlantic. “Both of these factors will cause prices to be higher than they are now by Memorial Day.”
AAA believes prices are likely to be a higher by Memorial Day than today, as production drops and refineries undergo seasonal maintenance in preparation for the summer driving season.
Also, some refineries reportedly have cut production because of abundant supplies and low prices.
However, unlike previous years, gasoline inventories are reportedly at higher-than-normal levels, and the price of crude oil remains low.
