AAA reported that Delaware gas prices have risen by about three cents in the past week.
That’s still 19 cents less than a month ago. Demand has risen as the busy Memorial Day weekend approaches, but crude oil prices have dropped into the $ 70-a-barrel neighborhood.
Warehouse clubs BJ’s and Costco in northern New Castle County had the state’s lowest prices at $3.18 a gallon. Warehouse clubs typically charge membership fees, often totaling about $50 a year.
The lack of movement can be attributed to higher demand for gasoline but a lower cost for oil canceling each other out.
|Week Ago Avg.||$3.347||$3.821||$4.053||$3.780|
|Month Ago Avg.||$3.571||$3.979||$4.232||$4.088|
|Year Ago Avg.||$4.446||$4.794||$5.053||$6.016|
“Increasing demand for gasoline would usually drive pump prices higher,” said Andrew Gross, AAA spokesperson, “but the cost for oil has remained low lately, so drivers should benefit from stable pump prices as Memorial Day draws near.”
According to new data from the Energy Information Administration (EIA), gas demand grew substantially from 8.62 to 9.30 million barrels a day last week. The spike is higher than some market observers expected; the estimate could be revised when EIA releases final demand numbers for May. Meanwhile, total domestic gasoline stocks decreased by 3.2 million barrels to 219.7 million barrels. Higher demand and a reduction in stocks have slowed pump price decreases.
On Friday, crude oil was trading at about $70 a barrel on concerns about a recession and stalled US debt ceiling talks.
The market is concerned that if the debt limit is breached, it could contribute to the economy tipping into a recession. If a recession occurs, crude demand and prices will likely decline. Also, the Energy Information Administration reported that total domes-tic commercial crude inventories increased by 3 million bbl to 462.6 million bbl last week.
Drivers can find current gas prices along their route using the AAA TripTik Travel planner