The Week

Across the Mid-Atlantic region, prices at the pump are slowly retreating, with many regions dropping two to four cents in the last week. Today’s national average price of $2.33 per gallon reflects a similar trend. The price of retail gasoline has dipped since last week with today’s average two cents less per gallon than one week ago, eight cents more than one month ago and 45 cents more per gallon year-over-year. The slight decrease in retail prices can be attributed to less demand and adequate supply.

CURRENT AND PAST GAS PRICE AVERAGES

Regular Unleaded Gasoline (*indicates record high)

 
01/20/17
Week Ago
Year Ago
National
$2.33 $2.35
$1.88
New Jersey
$2.42
$2.44
$1.74
Trenton
$2.46
$2.48
$1.79
Cape May County
$2.42
$2.44
$1.73
Burlington
$2.36
$2.40
$1.68
Middlesex, Somerset, Hunterdon Counties
$2.44
$2.46
$1.75
Monmouth, Ocean Counties
$2.43
$2.45
$1.74
Crude Oil

$51.37 per barrel (01/20/17)

$52.37 per barrel (01/13/17)
$26.55 per  barrel (01/20/16)

At the close of Friday’s formal trading session on the NYMEX, West Texas Intermediate (WTI) crude oil closed at $51.37 per barrel. The Organization of the Petroleum Exporting Countries’ (OPEC) December monthly outlook was released Wednesday, citing that its output fell by 221,000 barrels per day (bpd) but remains at well above levels predicted by the deal struck in November to cut oil production. In that same report, OPEC raised its forecast for demand for oil this year but also increased its forecast for U.S. supply. OPEC expects total non-OPEC supply to rise by 120,000 bpd this year, down from a previous forecast of growth of 300,000 bpd.

The Weekend

“We are seeing a return to the typical winter season pump price drop,” said Tracy Noble, spokesperson for AAA Mid-Atlantic.  “Winter-blend gasoline is less expensive to produce and consumers are seeing some of the savings, albeit a little later in the season.”

The Week Ahead

Although OPEC’s production cuts just started, Saudi Arabia believes they will be able to declare “Mission Accomplished” in June after the terms of the six-month deal end. But it remains to be seen whether or not inventories will rise if OPEC members go back to producing full-tilt.

The International Energy Agency (IEA) believes that a steeper month-on-month decline in production may be on the way in January.

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