The Week

The plunge at the pump continues throughout Maryland. Drivers saw prices drop by three cents on the week, resulting in prices that are at least 81 cents less than one year ago. Across the country, gasoline demand is down as much as 50 percent, while at the same time, inventories have risen to a record high. Crude prices hit a low not seen since 2002 this week, as crude demand continued to drop. This imbalance means gas prices should continue to move lower.

The gas price average in Maryland today is $1.93, which is down respectively three cents in the last week, 29 cents in the last month, and 81 cents from this date last year.

The national gas price average has declined for seven straight weeks. Today’s national gas price average is $1.82, down respectively six cents in the last week, 41 cents in the last month and $1.01 from this time last year.

CURRENT AND PAST GAS PRICE AVERAGES 

Regular Unleaded Gasoline

At the close of NYMEX trading Friday, West Texas Intermediate (WTI) crude oil settled at $18.27 per barrel, $4.49 lower than last Thursday’s close (markets were closed last Friday). Crude’s poor performance is the result of the major slowdown in demand for oil and an expected growth in surplus supplies. On Wednesday, the Energy Information Administration (EIA) reported a more than 19 million-barrel weekly increase in U.S. crude supplies – the 12th straight weekly increase and the largest weekly climb on record. A recent agreement by the Organization of the Petroleum Exporting Countries (OPEC+) and its allies reached Sunday, will cut crude production but will likely make little difference on pump prices given the ongoing impact the COVID-19 pandemic continues to have on crude oil prices and gasoline demand.

The Weekend

“As motorists in the region continue to stay at home amid COVID-19 challenges, crude and gasoline prices are likely to remain low,” says Ragina C. Ali, Manager of Public and Government Affairs for AAA Mid-Atlantic. “The oil market is considerably oversupplied and there is an overabundance of gasoline, coupled with demand levels not seen in over 50 years, pushing pump prices lower.”

The Week Ahead

In a report Thursday, OPEC cut its expectations for crude demand and said it now sees 2020 demand falling by 6.8 million barrels a day. The near-term demand picture remains front and center as well, with analysts looking for it to continue sliding at least through May.

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

• Shell Fuel Rewards Program for AAA Members (AAA.com/Shell) gives AAA members nationwide a discount on gasoline at Shell stations when they join the Fuel Rewards® program.
• Fuel Price Finder (AAA.com/fuelfinder) locates the lowest fuel price in your area.
• Fuel Cost Calculator (FuelCostCalculator.AAA.com) 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.

Next Weekend Gas Watch: Friday, April 24, 2020

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AAA provides automotive, travel and insurance services to over 60 million members nationwide and nearly 988,000 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.