The nation is seeing an unexpected glut of gasoline supplies in the U.S. market, record high refinery production rates, moderate demand and a recent drop in crude oil prices, Wilmington-based AAA Mid-Atlantic reported.
Also, refineries did not see unexpected problems in seasonal maintenance turnarounds that would have limited production.
Gas prices are now only a nickel higher than the same period a year ago.
CURRENT AND PAST GAS PRICE AVERAGES
Regular Unleaded Gasoline (*indicates record high)
|5/14/2017||Week Ago||Year Ago|
$47.84 per barrel
$46.22 per barrel
|$49.41 per barrel|
At the close of trading Friday, WTI crude oil increased $1.62 to settle at $47.84. Despite crude oil prices remaining below the $50 benchmark, WTI saw a
There is speculation that OPEC will extend production cuts beyond the June 30 deadline and into 2018, signaling a willingness to rebalance the market. Only time will tell if supply restrictions and rising demand will cut into ample supplies.
Two key producers, Russia and Saudi Arabia want to extend the time period for the production cuts, a move that led to a sharp rise in oil prices on Monday.
“Just two weeks ahead of the Memorial Day weekend, gas prices continue to take an unseasonal dip,” said Jana L. Tidwell, Manager of Public and Government Affairs for AAA Mid-Atlantic. “Oversupply and low crude oil prices are keeping prices at the pump somewhat low for this time of year, ahead of the summer driving season’s demand for fuel.”
As the seasonal demand for gasoline increases, motorists will be watching and waiting, AAA Mid-Atlantic reported.
To check out local fuel prices, log on to the AAAA’s Fuel Price Finder (http://www.AAA.com/fuelfinder.