The Week

Last weekend’s attack on key Saudi Arabian oil facilities knocked out half of that country’s oil capacity and has led to gas price increases across the U.S including in Washington, D.C. and the metro area. Gas prices in the District of Columbia have increased by eight cents since Friday and prices in the metro increased by a dime. Despite these recent increases, area drivers are still paying at least 20 to 30 cents less than this time last year.

Today’s national gas price average is $2.66, up nine cents in the last week, up five cents in the last month and down 18 cents from this time last year.

CURRENT AND PAST GAS PRICE AVERAGES

Regular Unleaded Gasoline (*indicates record high)

At the close of NYMEX trading Thursday, West Texas Intermediate (WTI) crude oil settled at $58.13 per barrel, $3.28 higher than last Friday’s close. Crude oil prices jumped 14 percent (from the previous Friday’s close) on Monday, in response to the attacks on Saudi oil facilities.  The commodity spike sent gas prices soaring across the U.S. However, crude prices retreated Tuesday and Wednesday after Saudi Arabia reported the damage caused by the weekend attacks was not as bad as initially thought. 

The Weekend

“Motorists across the country and here locally are seeing pump prices spike due to the loss of crude oil production in Saudi Arabia,” says John B. Townsend II, manager of Public and Government Affairs for AAA Mid-Atlantic. “The situation remains fluid, as how long the price spikes will last is unknown. However, AAA anticipates motorists may pay between five and 20 cents more than what they were immediately prior to the attacks in Saudi Arabia, depending on region and market. Since last Friday, prices in the metro area increased by a dime while prices in the District increased by eight cents.”

The Week Ahead

Analysts will continue to watch as the market assesses the fluid crude production situation in Saudi Arabia. A return to full capacity of the damaged facility is pledged by end of November however, crude, and therefore gas prices, could remain higher as global spare capacity is low. In addition to knocking out around half of Saudi Arabia’s crude production, it also severely limited the country’s spare capacity, which serves as a cushion for oil markets. In addition to production issues, geopolitical factors could also weigh on the situation including the U.S. and Saudi response to the weekend attacks, as both countries place the blame on Iran.

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

• Shell Fuel Rewards Program for AAA Members: (https://www.AAA.com/Shell) gives AAA members nationwide a discount on gasoline at Shell stations when they join the Fuel Rewards® program.

• Fuel Price Finder (https://www.AAA.com/fuelfinder) locates the lowest fuel price in your area. 

• AAA Gas Cost Calculator (https://gasprices.aaa.com/aaa-gas-cost-calculator/) helps budget travel expenses. 

• TripTik Mobile (https://www.aaa.com/mobile) plots fuel prices along your travel route. 

• AAA's Member Rewards Visa® Credit Card (https://www.AAA.com/financial/AAAvisa.htm) accumulates double points on fuel purchases. 

AAA is the most comprehensive resource for gas prices.  Unlike the Lundberg Survey of 7,000 gas stations, AAA reports reflect actual prices from credit card transactions at more than 100,000 gas stations in the U.S.

Next Weekend Gas Watch: Friday, September 27, 2019

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AAA provides automotive, travel and insurance services to 58 million members nationwide and nearly 79,000 members in the District of Columbia.  AAA advocates for the safety and mobility of its members and has been committed to outstanding road service for more than 100 years.  The not-for-profit, fully tax-paying member organization works on behalf of motorists, who can now map a route, find local gas prices, discover discounts, book a hotel and track their roadside assistance service with the AAA Mobile app for iPhone, iPad and Android. For more information, visit  https://aaa.com