Friday, December 1, 2023

AAA Tidewater: Rising Demand and Cost of Oil Reflected in Higher Pump Prices

(WYDaily File Photo)

VIRGINIA BEACH — A recent announcement by OPEC+ that it was cutting oil output, coupled with an increase in domestic demand for gasoline, has resulted in a jump in the national average pump price for a gallon of gas according to AAA Tidewater.

The recent announcement by the group of oil-producing nations that it would slash output by 2 million barrels per day led to the price of oil creeping above $90 a barrel for the first time in several weeks, AAA noted, while the national average pump price for a gallon of gas rose 12 cents over the past week to hit $3.91.

“Gas prices in California are finally cooling off, as more refineries come back online after undergoing maintenance and the switch to cheaper winter blends takes effect,” said Ryan Adcock, AAA Tidewater public relations specialist. “High West Coast prices have played a major role in the recent climb in the national average for gas. Reversing this trend may help take some pressure off of pump prices.”

According to data from the Energy Information Administration (EIA), gas demand increased nationally from 8.83 million to 9.47 million barrels per day last week. Meanwhile, domestic gasoline stocks decreased significantly by 4.7 million to 207.5 million barrels. That high gasoline demand, coupled with tighter supply, has resulted in higher prices at the pump.

The national average of $3.91 is 19 cents higher than a month ago and 65 cents more than a year ago.

(AAA Tidewater)

Prices also increased locally, landing at $3.49 — 18 cents higher than a week ago and the same price as a month ago. In Hampton Roads, prices increased 23 cents to $3.46, five cents higher than a month ago and 40 cents higher than a year ago.

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