TOWSON, MD (July 30, 2018) – As U.S. gasoline demand strengthened and supply declined, the national gas price average jumped two cents on the week to land at $2.86 per gallon, although Maryland’s average held steady at $2.82.  

According to the latest Energy Information Administration (EIA) report, total crude inventories fell on the week and now register at 405 million barrels, which is 80 million barrels lower than levels at the same time last year.  

“As crude and gasoline inventories tighten, motorists can expect gas prices to remain volatile and possibly trend higher in the weeks ahead,” said Ragina Cooper Averella, Public and Government Affairs Manager for AAA Mid-Atlantic. “Fortunately for the second consecutive week, most Maryland drivers are paying lower prices at the pump.” 

While today’s national gas price average is one cent less than last month, it is 55 cents more than a year ago and crude oil prices are up $20 per barrel higher compared to this time last year.

Maryland’s average gas cost is three cents higher than a month ago and 52 cents more than last year on this date. Surveyed metro areas across the state experienced weekly declines with the exception of Hagerstown, which increased seven cents on average from last week. 

Mid-Atlantic and Northeast Gasoline Supplies

With a nearly one million barrel decline, the Mid-Atlantic and Northeast region saw the largest drop in gasoline inventories in the country on the week, according to EIA data. However, at 65.2 million barrels, the region has a three million barrel inventory surplus compared to last year at this time, which could continue to help stabilize gas prices in the region.

CURRENT AND PAST GAS PRICE AVERAGES 

Regular Unleaded Gasoline

Oil Market Dynamics

At the close of Friday’s formal trading session on the NYMEX, West Texas Intermediate (WTI) crude oil decreased 92 cents to settle at $68.69 per barrel. Oil prices trended higher with the release of EIA's weekly report that total crude inventories fell by 6.2 million barrels and face a year-over-year deficit of 80 million barrels.

The tightened domestic crude supply amid robust global gasoline demand and high global crude demand will likely sustain the more expensive crude oil prices into the near future, which are $20 per barrel more compared to last year.

Additionally, the market will look at EIA’s supply data and July crude production data from OPEC and its partners — both of which will be released later this week — to determine how supply and demand are faring since the cartel announced that it would increase production to ease global crude price growth.

Moreover, according to Baker Hughes, Inc., the U.S. added three oil rigs last week, bringing the total to 861. Currently, there are 95 more active rigs this year than last year at this time.

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. 

• AAA Gas Cost Calculator (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.

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AAA provides automotive, travel and insurance services to 57 million members nationwide and more than 975,000 members in Maryland.  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 AAA.com.