VIRGINIA BEACH — While the power of the Force should never be underestimated, it is the fear of a global economic recession that is leading to falling pump prices.
The price for oil has dropped nearly $20 per barrel recently to the upper $60s, spurring a retreat for gas prices, according to AAA. The national average for a gallon of regular gasoline fell six cents since last week to $3.57.
“The oil market volatility is leading to lower prices,” said Ryan Adcock, AAA Tidewater public relations specialist. “And we are also in a pre-summer driving season lull regarding domestic demand. These two factors should keep pump prices drifting lower for now.”
According to new data from the Energy Information Administration (EIA), gas demand decreased from 9.51 million barrels to 8.62 million last week, which is more in line with what market observers expected, AAA said. The estimate could be revised when EIA releases final demand measurements for May.
Total domestic gasoline stocks increased by 1.8 million barrels to 222.9 million. Lower demand, along with the increase in stocks, has contributed to pushing pump prices lower. According to AAA, if demand remains low, drivers will likely continue to see pump prices decline.
Today’s national average of $3.57 is seven cents more than a month ago, but 65 cents less than a year ago.
The gas price average for the commonwealth decreased to $3.38, seven cents lower than a week ago and two cents lower than a month ago. In Hampton Roads, prices decreased nine cents to $3.35, 11 cents lower than last month and 73 cents lower than a year ago.
