The Week

Gas prices in most areas around Maryland moved very little this week – most areas flat, others down, and some areas, notably, Western Maryland, experienced increases by as much as six cents per gallon.

AAA expects gas prices to increase in the coming weeks as crude inventories rose less than expected and gasoline supplies remain robust, according to the latest report from the Energy Information Administration (EIA).

Today’s national gas price average is $2.28, which is up two cents in the last week, up five cents in the last month, and is 32 cents less than this time last year.

Maryland’s average price is six cents less than the national average at $2.22 per gallon. The state average is unchanged from last week, a penny more than last month, and 38 cents per gallon less than last year on this date.

At the close of NYMEX trading Thursday, West Texas Intermediate (WTI) crude oil settled at $52.61 per barrel, a $1.18 decrease compared to last Thursday’s settlement price.  Crude prices see-sawed this week, rising to a high of $54.56 (Monday) and to a low of $52.61 (Thursday).

Last week, the U.S. announced the sanctions on Venezuela's state oil company, a move which could further curb oil supplies.  In addition, weaker global economic growth, the trade dispute between the United States and China and continued OPEC-led crude oil supply cuts could lead to higher crude prices, followed by higher gas prices, in the coming weeks.

CURRENT AND PAST GAS PRICE AVERAGES 

Regular Unleaded Gasoline

The Weekend

“With the exception of Western Maryland, prices across the state have been placed in park for a few days, without much movement in either direction,” says Ragina Cooper Averella, Manager of Public and Government Affairs for AAA Mid-Atlantic. “The key driver for gas prices is crude oil.  If crude prices increase in the coming weeks, motorists will likely see a jump in prices at the pumps, as crude oil makes up more than 50 percent of the cost of a gallon of gasoline.

The Week Ahead

With crude stockpiles growing less than anticipated, crude prices will likely continue to gain ground. For market observers, the price gains indicate that the global crude supply is tightening, an anticipated result of OPEC’s production reduction agreement of 1.2 million barrels per day with other non-OPEC producers, including Russia. The reduction remains in effect for the first six months of 2019. Additionally, the global crude supply is expected to tighten, as a result of U.S.-imposed sanctions on crude exports from Venezuela, which could send oil prices higher and subsequently prices at the pump.

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

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

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

• AAA Gas Cost Calculator (GasPrices.AAA.com/AAA-gas-cost-calculator/) helps budget travel expenses. 

• TripTik Mobile (AAA.com/mobile) plots fuel prices along your travel route. 

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

Next Weekend Gas Watch: Friday, February 8, 2019

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AAA provides automotive, travel and insurance services to 59 million members nationwide and more than 982,000 members in Maryland.  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 AAA.com.