AAA Mid-Atlantic: Inflation at the Station – the Love Affair May be Over with Lower Gas Prices

The Week

Gas prices across the Mid-Atlantic region appear to be treading water as the consistent dip in prices seen for the past few weeks has begun to stall, ahead of the start to refinery maintenance season.  Today’s national average price of $2.29 is two cents more per gallon than one week ago, five cents less than a month ago, and an increase of 58 cents per gallon compared to this date last year. 

CURRENT AND PAST GAS PRICE AVERAGES

Regular Unleaded Gasoline (*indicates record high)

At the closing of Friday’s formal trading session on the NYMEX, West Texas Intermediate (WTI) crude oil settle at $53.41 per barrel. The Organization of the Exporting Petroleum Countries (OPEC) in January delivered record compliance of over 90 percent with its output curbs, according to estimates from the International Energy Agency and figures collected by OPEC's headquarters. Prices have remained relatively steady the past month as a result of the well-supplied crude oil market. Data from the Energy Information Administration (EIA) released Wednesday revealed a sixth straight weekly rise in U.S. crude inventories, lifting the total to an all-time high of 518.1 million barrels.  WTI prices have traded in a tight range between roughly $50 and $54 a barrel since the start of the year.

The Weekend

“Across the Mid-Atlantic region, most areas have seen the drop in gas prices come to a halt,” said Tracy Noble, spokesperson for AAA Mid-Atlantic.  “Refinery maintenance season will begin soon and the changeover to summer blend gasoline in the coming weeks will likely send prices higher.”

The Week Ahead

Oil prices took a turn higher earlier in the week, buoyed by a Reuters report that said OPEC could extend its production cut agreement by May with non-OPEC members, and may even apply deeper cuts if global inventories do not fall to a targeted level.  OPEC’s 90 percent compliance level by producers who had agreed to curtail their output is well above what many market participants were expecting.

AAA has a variety of resources to help motorists save on fuel:

• Fuel Price Finder (AAA.com/fuelfinder) locates the lowest fuel price in your area.
• Fuel Cost Calculator (https://gasprices.aaa.com/aaa-gas-cost-calculator/ helps budget travel expenses.
• TripTik Mobile (AAA.com/mobile) plots fuel prices along your travel route.

AAA's Member Rewards Visa® Credit Card (AAA.com/financial/AAAvisa.htm) accumulates double points on fuel purchases.

Follow us on Twitter: @AAANJNews

NJ Mailing Address:
700 Horizon Drive
Hamilton Township, NJ 08691

AAA provides automotive, travel and insurance services to 56 million members nationwide and nearly two million members in New Jersey. AAA advocates for the safety and mobility of its members and has been committed to outstanding road service for more than 100 years. The not-for-profit, fully tax-paying member organization works on behalf of motorists, who can now map a route, find local gas prices, discover discounts, book a hotel and track their roadside assistance service with the AAA Mobile app for iPhone, iPad and Android. For more information, visit www.aaa.com.