VIRGINIA BEACH — Despite fewer U.S. drivers fueling up, the national average pump price rose four cents over the past week to $3.80, according to AAA Tidewater.
Rising oil prices and worries over Russian oil production cuts contributed to concerns about global supplies, it said, but reports of new Covid-19 restrictions in China could mean an economic slowdown for the world’s top oil-consuming nation.
“The oil market, like the stock market, hates negative headlines, no matter how speculative,” said Ryan Adcock, AAA Tidewater public relations specialist. “And that is why we see the oil price back over $90 a barrel. More expensive oil usually leads to more expensive gasoline, but the recent Covid-related news from China may stem this increase.”
According to data from the Energy Information Administration (EIA), gas demand dipped from 8.93 to 8.66 million barrels per day last week, while total domestic gasoline stocks decreased by 1.3 million barrels to 206.6 million, with tighter supply and fluctuating oil prices putting upward pressure on gasoline prices. Pump prices could increase if supply remains tight alongside rising oil prices, it said.
Monday’s national average of $3.80 is nine cents less than a month ago and 38 cents more than a year ago.
Locally, the gas price average for the commonwealth decreased to $3.48, two cents lower than a week ago and eight cents higher than a month ago. In Hampton Roads, prices decreased six cents to $3.45, twelve cents higher than last month and 18 cents higher than a year ago.
