The Week

Gas prices across the Washington, D.C. metro area are fairly stable heading into the holiday weekend as new data shows the demand for gas has slightly decreased and gasoline supplies grew. The COVID-19 virus continues to impact gasoline demand and travel trend-lines. The national average is also holding steady which means gasoline supply and demand are largely in sync across the country, and holding at the lowest point for the Independence Day holiday weekend since 2016. If these trends continue, motorists could see pump prices slow their increases through the holiday weekend.

The demand for gasoline dipped ahead of the July Fourth weekend. That’s due in part to the fact that a number of states reported record highs in new coronavirus infections, topping 54,357 new COVID-19 cases daily on Wednesday, the Centers for Disease Control and Prevention (CDC) reported. That comprises the highest daily tally since the onslaught of the pandemic in the United States. Another drag on gasoline demand is the national unemployment rate, which stands at 11.1% although the economy added 4.8 million jobs in June, the U.S. Labor Department reported this morning. In fact, 1.4 million people filed unemployment claims for the first time last week.

Despite this, the Oil Price Information Service (OPIS) posits: “crude and refined product futures were broadly higher by midday Eastern Daylight Time on Thursday, boosted by a drop in U.S. unemployment and the previous day’s solid drawdown in crude inventories, outweighing worries over renewed declines in mobility due to surging coronavirus disease 2019 (COVID-19) infections in most of the U.S.”

The gas price average in the District of Columbia is $2.29, which is up three cents in the last week, but still down 54 cents from a year ago. The gas price average in the Washington, D.C. metro area is $2.15, which is up two cents in the last week, but down 52 cents from this date last year. Today’s national gas price average is $2.17, unchanged in the last week, up 21 cents in the last month and down 56 cents from this time last year.

CURRENT AND PAST GAS PRICE AVERAGES

Regular Unleaded Gasoline (*indicates record high)

At the close of NYMEX trading Thursday, West Texas Intermediate (WTI) crude oil settled at $40.65 per barrel, $2.16 higher than Friday’s close. Domestic crude prices remained between $39 and $41 this week, buoyed by the Energy Information Administration’s (EIA) weekly report that revealed total domestic crude inventories had fallen. Decreasing crude stocks could mean that crude production is meeting demand as it continues to recover amid new coronavirus outbreaks.

The Weekend

“As gas price increases slow, local drivers can look forward to spending more than 50 cents less than they did on July Fourth last year and the lowest prices for the holiday weekend since 2016,” John B. Townsend II, manager of Public and Government Affairs for AAA Mid-Atlantic. “With those savings, drivers can afford to throw a few more hot dogs and hamburgers on the grill this weekend.”

The Week Ahead

AAA expects the national gas price to average near $2.25 per gallon for the third quarter of 2020, which will be a 15% decline from the $2.66 average seen last summer. This will be the cheapest summer for filling-up since 2016. When at the pump, AAA recommends wearing disposable gloves or using a plastic sandwich bag to avoid touching the pump handle. When back in your car, be sure to clean your hands with sanitizer or wipes.

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

• Shell Fuel Rewards Program for AAA Members: (https://www.AAA.com/Shell) gives AAA members nationwide a discount on gasoline at Shell stations when they join the Fuel Rewards® program.

• Fuel Price Finder (https://www.AAA.com/fuelfinder) locates the lowest fuel price in your area. 

• AAA Gas Cost Calculator (https://gasprices.aaa.com/aaa-gas-cost-calculator/) helps budget travel expenses. 

• TripTik Mobile (https://www.aaa.com/mobile) plots fuel prices along your travel route. 

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

Next Weekend Gas Watch: Friday, July 10, 2020

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Washington, D.C. Mailing Address:
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AAA provides automotive, travel and insurance services to 60 million members nationwide and nearly 82,000 members in the District of Columbia.  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  https://aaa.com