Gasoline prices shot up during the past week as crude oil prices rose and refineries began the conversion to summer blends.
AAA Mid-Atlantic, Wilmington, reported the price at the pump rose to $1.85 a gallon, up about 15 cents from a week earlier, but well below the $2.35 reported a year earlier.
According to the AAA’s Fuel Cost Calculator, the average price of $1.85 in Delaware was widespread, although the New Castle and Kirkwood Highway areas were seeing far lower prices.
The GasBuddy website reported BJ’s Wholesale Club sites in New Castle and Elsmere were posting prices of $1.65 a gallon.
Sunday’s national average price of $1.93 reflects a jump of 12 cents for the week, and 23 cents more per gallon versus one month ago.
Prices are still down 51 cents on the year.
Crude oil prices continue to rally as market fundamentals start pointing toward supply and demand coming more into balance in the nearer-term.
West Texas Intermediate Crude traded above $38 per barrel on Wednesday, its highest price since the beginning of the year, and settled at $38.50 per barrel at the close of Friday’s formal trading session on the NYMEX. This price represents a gain of $2.58 over last week.
“Despite the recent seasonal uptick in prices at the pump, this year’s spring turnaround has been characterized by lower-than-expected prices. This is prompting a number of refineries to adjust their maintenance schedules and/or cut production,” said Jana L. Tidwell, manager of Public and Government Affairs for AAA Mid-Atlantic. “The lower price of crude oil and abundant supplies should keep a ceiling on how high gas prices move in the coming months.”
Refineries are believed to be reducing production in preparation for the seasonal switchover to summer-blend gasoline.
Prices generally move upward during this time of year and while prices are not expected to rise to last year’s level, the impact of this shift in the production schedule, combined with other seasonal factors, may cause prices to swing at the regional level at a faster rate than normal as supply and demand seek balance.
