Motorists are seeing an unexpected sping gas price dip, the result of increased gasoline inventories and low demand across the country, Wilmington-based AAA Mid-Atlantic reported.
The price at the pump dropped six cents a gallon in Delaware with prices only seven cents above the same period a year earlier. Southern New Jersey continued to see gas prices that were only a few cents higher
Southern New Jersey continued to see gas prices that are only a few cents higher than Delaware, a state where gas taxes are 14 cents lower.
Pennsylvania has the nation’s highest gas taxes, with the gap between the Keystone State and Delaware totaling more than 30 cents a gallon.
Once again BJ’s Wholesale Club has emerged as the price leader, with the store posting a members-only price of $2.12 a gallon. That’s according to the GasBuddy.com website.
One year ago, the nation was experiencing higher consumer demand and prices were increasing.
CURRENT AND PAST GAS PRICE AVERAGES
Regular Unleaded Gasoline (*indicates record high)
| 5/7/2017 | Week Ago | Year Ago | |
| National | $2.35 | $2.39 | $2.22 |
| Pennsylvania | $2.62 | $2.65 | $2.41 |
| Philadelphia (5-county) | $2.61 | $2.65 | $2.42 |
| South Jersey | $2.31 | $2.36 | $2.04 |
| Wilkes-Barre | $2.61 | $2.63 | $2.42 |
| Delaware | $2.27 | $2.33 | $2.20 |
| Crude Oil |
$46.22 per barrel |
$49.33 per barrel |
$48.05 per barrel |
At the close of trading Friday, May 5, West Texas Intermediate crude oil dropped $3.11 to settle at $46.22.
The sub-$50 per barrel price can be partly attributed to increasing crude oil stocks. Increased production from the U.S. comes ahead of talks to extend a production cut agreement from OPEC and non-OPEC countries, which is scheduled to end on June 30.
The countries in the agreement will meet on May 25 in Vienna, Austria to discuss whether to end or extend the supply reduction.
“Oversupply is keeping gas prices low as the market awaits the summer driving season’s demand for fuel,” said Jana L. Tidwell, manager of Public and Government Affairs for AAA Mid-Atlantic. “Oil prices remain under $50 per barrel, which also contributes to lower prices at the pump.”
There is reason to believe that continued low crude oil price is reducing global investment in oil exploration, which could lead to tighter supplies. moving forward. Last week, the International Energy Agency (IEA) released information that revealed global oil discoveries fell to a record low in 2016, as companies continued to cut spending and conventional oil projects were at their lowest level in 70 years.
Last week, the International Energy Agency (IEA) released information that revealed global oil discoveries fell to a record low in 2016, as companies continued to cut spending and conventional oil projects were at their lowest level in 70 years.
Also believed to be a factor are new vehicles that are showing up in driveways and business parking lots Even large SUVs and pickup trucks can eke out 20-mile-per-gallon fuel consumption rates on the highway.
Domestic producers have aso found ways to produce oil at prices below $50 a barrel.
Last week, the International Energy Agency (IEA) released information that showed global oil discoveries fell to a record low in 2016, as companies continued to cut spending and conventional oil projects were at their lowest level in 70 years.
To find out oil prices in your neighborhood, check out AAA’s Fuel Price Finder (http://www.AAA.com/fuelfinder)
