Gas prices drop a couple of pennies as U.S. oil production surges

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Delaware gas prices dropped  two cents  in the past week as gasoline inventories increased and the price of crude dropped a bit, Wilmington-based AAA Mid-Atlantic reported. 

Area refineries have experienced few operating problems during the summer driving season, despite running close to full production. 

The latest figures showed that Delaware drivers are not fully benefitting from the state’s low gas taxes.

For example, South Jersey gas prices were seven cents  above  the Delaware figure, even though drivers in the Garden state shell out 24 cents a gallon  more than their Delaware counterparts.

The national average price for regular unleaded gasoline is $2.34 per gallon, which is down a penny on the week, six cents more than one month ago, and 19 cents more than last year. 

CURRENT AND PAST GAS PRICE AVERAGES
Regular Unleaded Gasoline (*indicates record high)
  8/20/2017 Week Ago Year Ago
National $2.34 $2.35 $2.15
Pennsylvania $2.55 $2.56 $2.26
Philadelphia (5-county) $2.55 $2.58 $2.25
South Jersey $2.30 $2.36 $1.90
Wilkes-Barre $2.53 $2.55 $2.23
Delaware $2.23 $2.25 $2.00
Crude Oil
$48.51 per barrel
(Fri. 8/18/17 close)
 
$48.82 per barrel
(Fri. 8/11/18 close)
$53.02 per barrel
 

At the close of NYMEX trading Friday, WTI crude oil decreased 31 cents on the week to settle at $48.51. 

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Domestic crude supplies fell by 8.9 million barrels for the week ending August 11, reinforcing the attempts to rebalance the global oil market. 

However, high oil production numbers, took  U.S. crude output to its highest level  in more than two years, reducing the effect of OPEC cuts.

At a meeting in Abu Dhabi last week with OPEC and non-OPEC producers – all members of a pact that has agreed to cut production by 1.8 million barrels per day until March 2018 – the group decided to take action, including curtailing exports, to comply more fully with the agreement. If those measures  are a success, it will likely lead to higher prices at the pump.

“Last-minute summer road-trippers are getting a break at the pump in many areas in the Mid-Atlantic,” said Jana L. Tidwell, Manager of Public and Government Affairs for AAA Mid-Atlantic.  “Gas prices could continue to ride the roller coaster or hold steady as U.S. crude inventories head down and gasoline inventories head up.”

As the first cross-country solar eclipse since the advent of the automobile takes place Monday, areas along the eclipse’s path fear running out of gasoline as a result of the influx of tourists.

Some states are coping with heavy traffic delays and long lines at some stations because others have gone dry. Many gasoline retailers are working to schedule extra deliveries to keep up with demand. Increased demand due to the solar eclipse may drive gasoline stocks down further and increase prices in states that experience unexpected demand. 

Many gasoline retailers are working to schedule extra deliveries to keep up with demand. Increased demand due to the solar eclipse may drive gasoline stocks down further and increase prices in states that experience unexpected demand, AAA Mid-Atlantic reported. 

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