Gas prices increase as more people venture out

0

As stay-at-home restrictions ease in some regions, the demand for gasoline is on the rise.

Local drivers saw a slight gas price increases across the region but many are still paying at least 85 cents less than one year ago.

The price at the pump in Delaware rose by a couple of cents, although prices below the $1.76 average were widely available.

In northern Delaware, Costco’s station south of Newark remained the price leader, with the member-only rate of $1.44 a gallon.

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

5/15/20

Week Ago

Year Ago

National

$1.86

$1.82

$2.86

Pennsylvania

$2.11

$2.04

$3.01

Philadelphia
(5-county)

$2.14

$2.13

$3.01

South Jersey

$1.92

$1.92

$2.81

Delaware

$1.76

$1.74

$2.67

Crude Oil

$29.43
per barrel
(Fri. 5/15/20 close)

$24.74
per barrel
(Fri. 5/8/20 close)

$62.76
per barrel
(5/18/19)

At the close of NYMEX trading Friday, West Texas Intermediate (WTI) crude oil settled at $29.43 per barrel, $4.69 higher than last Friday’s close.

Today’s closing price ends a week where crude prices stayed above $25 and reached a price not seen since early April. Oil prices increased during the week as U.S. government data showed an unexpected weekly decline in domestic crude supplies – the first in 16 weeks – easing a storage crisis, and declines in total oil production.

Global oil prices were also boosted in recent days by Saudi Arabia’s pledge to cut its oil production by an additional one million barrels per day, starting in June, on top of cuts outlined in the deal between Organization of the Petroleum Exporting Countries (OPEC+) and its allies that kicked in on May 1.

“Pump prices are fluctuating throughout the Delaware Valley and across the country as demand increases and gasoline stocks decrease,” says Jana L. Tidwell, manager of Public and Government Affairs for AAA Mid-Atlantic. “The boost in demand continues to push pump prices up nationwide, as more states re-open businesses.”

The U.S. Energy Information Administration (EIA) expects U.S. crude oil production to fall in 2020 and 2021 as efforts to mitigate the spread of COVID-19 continue to result in a drastic drop in demand for petroleum products and crude oil prices.

The EIA’s May Short-Term Energy Outlook forecasts that U.S. crude oil production will average 11.7 million barrels per day in 2020 and 10.9 million barrels per day in 2021. These levels would be lower than the 2019 average of 12.2 million barrels per day.

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

Facebook Comments