Have gas prices hit bottom?

Delaware’s gas price fell during the past week as the national price at the pump increased slightly. 

The battle for the state’s lowest price continued between the BJ’s and Costco warehouse clubs. Both were charging $1.44 for a gallon of regular in northern Delaware as of Friday.

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

At the close of NYMEX trading Friday, West Texas Intermediate (WTI) crude oil settled at $19.78 per barrel, $2.84 higher than last Friday’s close.

Throughout the week, oil settlements remained below $20 per barrel. Domestic crude prices grew this week amid optimism that refiners are continuing to make necessary production cuts to reduce the crude oversupply challenges due to low crude demand caused by COVID-19.

Moreover, with rising gasoline demand likely in the coming weeks, market observers believe crude and gas demand may have already reached their lowest points for 2020 and continued price increases will follow. 

“Most Delaware Valley drivers are paying almost $1 less for gasoline than one year ago and the lowest pump prices in more than four years,” says Jana L. Tidwell, manager of Public and Government Affairs for AAA Mid-Atlantic. “However, as the country starts to slowly reopen, an increase in gasoline demand will likely cause gas prices to stabilize and increase slightly.”

Stay-at-home orders and reduced economic activity have decreased transportation fuel demand, contributing to record increases in U.S. commercial crude oil inventories. Refiners have been able to reduce the amount of material they run through refineries relatively quickly in response to falling demand, but crude oil production has not responded as quickly, leading to large crude oil inventory increases.

To check out gas prices in your neighborhood, log on to (http://www.AAA.com/fuelfinder) locates the lowest fuel price in your area.