Crude oil drops; Will gas prices follow?

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Delaware gas prices were up by a couple of pennies during the past week.

The price at the pump in Delaware dipped by two cents between Wednesday and Thursday, AAA reported. Still, prices remain d about eight cents a gallon above a month earlier but well below the figure for a year ago, a period when Russia’s brutal invasion of Ukraine rattled oil markets.

Despite the sour economic news roiling the stock and oil markets, the national average for a gallon of regular gasoline had a calm week, remaining at $3.46. Meanwhile, the global oil price plunged into the low to mid $60 per barrel, a level not seen since August 2021, AAA reported.

TimeframeRegularMid-GradePremiumDiesel
Current Avg.$3.291$3.721$3.984$3.992
Yesterday Avg.$3.317$3.724$3.963$4.016
Week Ago Avg.$3.277$3.698$3.957$4.138
Month Ago Avg.$3.207$3.654$3.906$4.214
Year Ago Avg.$4.165$4.576$4.797$4.960
From AAA

Crude oil prices were affected by troubles in the financial system, including the federal takeover of two banks and signs of stress in the banking systems in other nations.

To find gas prices in your neighborhood, log on to AAA’s Fuel Finder. According to the fuel finder, membership clubs had the lowet gas prices, led by Sam’s Club in Dover offering $3 a gallon gas Costco and BJ’s were reported to be selling regular at $3.10 a gallon.

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“Given that the cost of oil accounts for 55% of what we pay for gas, it’s fair to wonder how soon prices will drop at the pump,” said Andrew Gross, AAA spokesperson, “But gas stations paid for the fuel that is in their underground tanks weeks ago when oil was nearly $15 more a barrel. So it will take time for any savings due to cheaper oil to be seen at the pump. And that is assuming the oil price does not rise again.”

According to new data from the Energy Information Administration, gas demand increased slightly from 8.56 million to 8.59 million b/d last week. Meanwhile, total domestic gasoline stocks decreased by 2.1 million barrels to 236 million bbl last week. Typically, increased demand amid tighter supply would push pump prices higher; however, lower oil prices have countered this effect. If crude oil prices keep falling, drivers could see pump prices decline.

Thursday’s national average price of $3.46 is four cents more than a month ago but 84 cents less than a year ago.

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