Despite Russia-Saudi deal on production cuts, gas is expected to remain cheap

0
Advertisement

Delaware Valley drivers saw another week of low gas prices.

The latest Energy Information Administration (EIA) weekly report puts demand at a nearly 52-year low, and it’s likely to push lower as Americans are urged to stay at home.

Warehouse stores continued to set the pace in northern Delaware with prices as low as $1.64 a gallon at the Costco near Christiana Mall south of Newark. 

Pennsylvania, New Jersey and Delaware all have gas price averages as much as 77 cents than  than a year ago. The decline has slowed to single-digit weekly decreases.

Wilmington-based AAA Mid-Atlantic believes gas prices are positioned to see decreases in the week ahead, possibly at a faster pace.

CURRENT AND PAST GAS PRICE AVERAGES
Regular Unleaded Gasoline (*indicates record high)

 

4/10/20

Week Ago

Year Ago

National

$1.88

$1.95

$2.76

Pennsylvania

$2.13

$2.17

$2.90

Philadelphia
(5-county)

$2.25

$2.29

$2.85

South Jersey

$2.05

$2.09

$2.66

Delaware

$1.85

$1.89

$2.56

Crude Oil

$22.76
per barrel
(Thurs. 4/9/20 close)

$28.34
per barrel
(Fri. 4/3/20 close)

$63.89
per barrel
(4/12/19)

 

At the close of NYMEX trading Thursday (markets are closed Friday), West Texas Intermediate (WTI) crude oil settled at $22.76 per barrel, $5.58 lower than last Friday’s close.

This week, prices hovered between $22 and $26 per barrel, more than $35 less than one year ago.

 Saudi Arabia and Russia arrived at a decision to reduce crude production late Thursday, ending a bitter oil war.

Members will decrease overall crude oil production by 10 million barrels per day starting May 1 through June 30.

“Gasoline demand continues to decline as many people adhere to stay at home orders,” says Jana L. Tidwell, manager of Public and Government Affairs for AAA Mid-Atlantic. “Despite recent crude oil volatility and this week’s OPEC agreement to reduce production, any potential increases in crude oil prices are not likely to have an impact on gas prices in the near term.”

For the April–September 2020 summer driving season, EIA forecasts U.S. regular gasoline retail prices will average $1.58 per gallon, down from an average of $2.72 per gallon last summer. The lower forecast gasoline prices reflect lower forecast crude oil prices and significantly lower gasoline demand in the second quarter of 2020 driven by COVID-19 travel restrictions and disruptions to domestic economic activity.

For all of 2020, EIA expects U.S. regular gasoline retail prices to average $1.86 per gallon and gasoline retail prices for all grades to average $1.97 per gallon.

To check out gas prices in your neighborhood, log on to AAA’s Fuel Price Finder,  (http://www.AAA.com/fuelfinder).

Facebook Comments
Advertisement
Advertisement