With drivers off the roads for multiple days, gasoline demand drops

The Week

The Mid-Atlantic region watched snowflakes fall last weekend, along with prices at the pump. Nationally, gas prices have spent 25 (as of Monday) consecutive days below $2 per gallon and could head lower still as reduced seasonal demand and falling crude oil costs combine to send pump prices to the lowest mark in six years. Today’s average price of $1.81 per gallon is down by four cents on the week, 19 cents on the month and 23 cents on the year.

CURRENT AND PAST GAS PRICE AVERAGES

Regular Unleaded Gasoline (*indicates record high)

 
1/29/2016
Week Ago
Year Ago
National
$1.81 $1.85
$2.04
New Jersey
$1.70
$1.72
$1.91
Trenton
$1.75
$1.78
$1.99
Cape May County
$1.69
$1.72
$1.87
Burlington
$1.64
$1.67
$1.86
Middlesex, Somerset, Hunterdon Counties
$1.71
$1.74
$1.90
Monmouth, Ocean Counties
$1.70
$1.72
$1.90
Crude Oil

$33.66 per barrel

$32.19 per barrel
$44.53
per barrel

West Texas Intermediate (WTI) crude oil prices have rallied for the last five trading days, settling above the $30 per barrel mark. Speculation on talks of a collective production cut from Russia and OPEC, which the Cartel denied appeared to be fueling the price rise.  As of early afternoon Friday, the commodity continues to trade around the $33 per barrel mark.  

The Weekend

"Gasoline prices tend to drop during January and February as demand shrinks to its lowest levels,” said Tracy Noble, spokesperson for AAA Mid-Atlantic. “Demand was even lower this past week as millions became home-bound after the record-breaking snow storm that blanketed the Northeast.”

The Week Ahead

The Energy Information Administration’s (EIA) latest report finds that both crude oil and gasoline inventories have increased. On the East coast, gasoline inventories are up by 2.9 million barrels in comparison to last year, while oil inventories are more than 21 percent higher today than they were at this time last year.

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