The Week

Local drivers are enjoying another week of lower gas prices as averages decreased at least four cents over last week in New Jersey, Pennsylvania, and Delaware. Delaware holds onto the cheapest gasoline in the country for a second week as well, with an average price of $2.47. Gas prices are being pushed lower due to seasonal demand, winter-blend fuel, and falling crude prices. As motorists settle into the fall driving season, demand should continue to decrease and pump prices will likely decline into next week.

Today’s national gas price average is $2.78, which is down six cents in the last week, down 11 cents in the last month, and 27 cents higher than this time last year.

                                     CURRENT AND PAST GAS PRICE AVERAGES

Regular Unleaded Gasoline (*indicates record high)

 

11/02/18

Week Ago

Year Ago

National

$2.78

$2.84

$2.51

New Jersey

$2.78

2.83

$2.51

Trenton

$2.84

$2.88

$2.54

Cape May County

$2.70

$2.79

$2.84

Burlington

$2.66

$2.72

$2.47

Middlesex, Somerset, Hunterdon Counties

$2.80

$2.85

$2.53

Monmouth, Ocean Counties

$2.78

$2.83

$2.52

Crude Oil

$63.14 per barrel (11/02/18)

$67.59 per barrel (10/26/18)

$53.77 per barrel (11/03/17)

 

At the close of NYMEX trading Friday, West Texas Intermediate (WTI) crude oil settled at $63.14 per barrel, down $4.45 from last Friday and its lowest price since April 9. Total domestic crude inventories in the U.S. increased 3.2 million barrels last week, according to the Energy Information Administration’s latest report. Steady growth in crude inventories has helped to check excessive increases in crude prices. However, pending U.S.-imposed sanctions on Iran’s crude exports could potentially ignite fears in the market about constrained global supply this winter, leading oil prices to see new highs for 2018.

The Weekend

“We’re on a bit of a wait-and-see ride when it comes to gas prices, both locally and nationally,” said Tracy E. Noble, manager of Public and Government Affairs for AAA Mid-Atlantic. “Gas prices are falling for now, but that could change soon if global supply for crude oil is impacted by the U.S. sanctions against Iran scheduled to take effect in the next week.”

The Week Ahead

New U.S. sanctions on Iran begin Nov. 4 and Washington has made it clear that it expects those countries who get their crude from Iran to stop buying from it on that date. It remains to be seen what impact this will have on the global supply of crude as oil supply from other countries is rising, with production in the U.S., Saudi Arabia and Russia remaining strong. Saudi Arabia has indicated it is prepared to raise oil production, addressing what had been a major concern ahead of Iran sanctions taking effect. OPEC meets in early December, and there should be discussions about an official increase in oil production, which could help counteract any deficit the sanctions could bring.

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