Gas prices remain well below year-ago figures

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Gas prices continued to drop across the Delaware Valley.

Prices in Pennsylvania, New Jersey and Delaware are down between 10 and 15 cents since August 1, Wilmington-based AAA Mid-Atlantic reported. Prices were stable in the First State over the past week.

Putting downward pressure on gas prices less expensive crude oil prices, the drop-off in gasoline demand after Labor Day and the move to winter-blend gasoline.

CURRENT AND PAST GAS PRICE AVERAGES

Regular Unleaded Gasoline (*indicates record high)

8/23/19

Week Ago

Year Ago

National

$2.60

$2.63

$2.83

Pennsylvania

$2.76

$2.80

$3.03

Philadelphia
(5-county)

$2.81

$2.85

$3.03

South Jersey

$2.55

$2.60

$2.78

Delaware

$2.39

$2.39

$2.73

Crude Oil

$54.17
per barrel
(Fri. 8/23/19 close)

$54.87
per barrel
(Fri. 8/16/19 close)

$68.72
per barrel
(8/24/18)

At the close of NYMEX trading Friday, West Texas Intermediate (WTI) crude oil settled at $54.17 per barrel, 70 cents lower than last Friday’s close.

Prices rose higher Thursday after data showed a heavy drawdown in U.S. crude inventories, but continued concerns over the global economy limited the gain.

The continued glut of oil encouraged the Organization of the Petroleum Exporting Countries (OPEC) and its partners to extend their 1.2 million barrel-a-day production reduction agreement through the end of the year. However, so far, reduced supply from OPEC and its partners has not led to a sustained higher price for crude.

“Falling gas prices are not usual at this time of year but cheaper crude oil has served as an accelerator, which has been a nice treat for motorists as summer comes to a close,” said Jana L. Tidwell, manager of Public and Government Affairs for AAA Mid-Atlantic. “The AAA Gas Price forecast also bodes well for anyone planning a road trip this fall.

AAA predicts fall gasoline prices will be significantly less expensive than this summer with motorists finding savings in every market across the country.

Many factors are driving this decrease, but the low price of crude oil is chief among them. AAA sees crude prices to range between $50 and $60 per barrel this fall, a considerable drop from last fall.

This month, the National Oceanic and Atmospheric Administration predicted that 2019’s Atlantic hurricane season is expected to be above normal, with 10 to 17 named storms, including five to nine hurricanes. The mere threat of a hurricane leads to production cuts as refineries in preparation for a possible storm.

To check out prices in your neighborhood, log on to http://www.AAA.com/fuelfinder).

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