The Week

Gas prices across the Mid-Atlantic region continue to drop, and average prices in New Jersey, Virginia and Delaware are now below $2 per gallon. The national average price for regular unleaded gasoline sits at $2.14 per gallon, which is the lowest mark since April and the lowest price for this date since 2004. Today’s price is four cents less than one week ago, 15 cents less than one month ago, and 55 cents less than the same date last year.

CURRENT AND PAST GAS PRICE AVERAGES

Regular Unleaded Gasoline (*indicates record high)

 
07/29/16
Week Ago
Year Ago
National
$2.14 $2.18
$2.69
New Jersey
$1.95
$1.99
$2.50
Trenton
$2.02
$2.05
$2.56
Cape May County
$1.95
$1.97
$2.51
Burlington
$1.87
$1.90
$2.43
Middlesex, Somerset, Hunterdon Counties
$1.96
$2.00
$2.51
Monmouth, Ocean Counties
$1.93
$1.96
$2.52
Crude Oil

$41.46 per barrel (07/29/16)

$44.19 per barrel (07/22/16)
$48.79 per barrel (07/29/16)

At the close of Friday’s formal trading session on the NYMEX, WTI closed at 41.46 per barrel. Crude oil prices hit a three-month low this week and for the second year in a row, a multi-month rally in oil prices came to an end in the month of July. U.S. crude oil supplies are at their highest level for this time of year in 86 years, although domestic oil production has ticked lower each of the past nine months. Overall, domestic deliveries are 1.7 percent higher during the first half of 2016 than the same period last year, which is in line with AAA reports of travelers taking advantage of lower gas prices and hitting the roads in record numbers this year.

The Weekend

“Gas prices are likely to remain low for the remainder of the summer compared to recent years,” said Tracy Noble, spokesperson for AAA Mid-Atlantic.  “More than one-third of gas stations nationwide are selling gasoline for $2.00 per gallon or less, including those in New Jersey and Delaware.”

The Week Ahead

Despite the lowest seasonal prices in 12 years, there’s always the possibility that unexpected events could trigger higher prices later this summer. For example, crude oil costs could rise due to disruptions in supply, stronger than expected economic growth or geopolitical tensions overseas. In addition, regional prices could increase due to refinery problems, production cuts, stronger than anticipated demand, or hurricanes that impact distribution and production. Many analysts have predicted oil prices could drop even further later this year, which would likely lead to lower gas prices for consumers heading into the fall.