The Week

Local gas prices are following the national gas price average, as 2019 ushers in the cheapest national gas price average in three years when the national average was $1.99 per gallon on New Year’s Day 2016, while Maryland’s average price was $1.97.

Today’s national gas price average is $2.25 per gallon, which is down four cents in the last week, 20 cents in the last month, and is 24 cents less than this time last year.

Maryland’s average price is four cents less than the national average at $2.21 per gallon. The state average is four cents lower than last week, 15 cents less than last month, and 30 cents per gallon less than last year on this date.

Average prices for four metro areas, Annapolis, Baltimore, Frederick, and Salisbury, are trending lower than the state average with Salisbury, at the cheapest of AAA’s surveyed metro areas at $2.06 per gallon.  Cheapest countywide prices can be found in Cecil, Harford, Wicomico, and Worcester.

At the close of NYMEX trading Thursday, West Texas Intermediate (WTI) crude oil settled at $47.09 per barrel, $2.48 higher than last Thursday’s settlement price. The end of 2018 drove WTI crude oil prices to as low as $42 per barrel, which is a steep $35 drop from the high of $76 per barrel seen during October. 

Oil prices have hovered between $45 and $47 per barrel this week, as market observers continue to believe that the global crude market is over-supplied. Moreover, new concerns are growing of a potential economic slowdown in 2019 that could lead to a decline in global demand for crude. However, recent price gains in the market underscore how volatile the market is now, which could lead crude prices higher if global supply tightens, amid robust demand for crude. For now, new reports indicate that the U.S., Russia, and Iraq, the second largest producer in the Organization of the Petroleum Exporting Countries (OPEC), saw crude production and export increases in the final months of 2018, contributing to the falling price of crude.

CURRENT AND PAST GAS PRICE AVERAGES 

Regular Unleaded Gasoline

The Weekend

“Analysts will be closely watching oil prices as OPEC production cuts take effect this week,” said Ragina Cooper Averella, Manager of Public and Government Affairs for AAA Mid-Atlantic. “Pump prices will likely remain cheap for at least the first half of the month but markets might show more volatility as the cartel’s production cuts continue into next month.”

The Week Ahead

In December of last year, OPEC and its partners made a deal to cut oil production for the first six months of 2019. The cut in production could very well raise the price of oil and therefore push gas prices higher. Analysts will be watching carefully to see whether the countries involved in the production cuts will hold to the current agreement. OPEC plans to meet in April to review the deal’s progress before the six months are up.

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

• AAA Shell Gas Discount: (AAA.com/Shell) gives AAA members nationwide a discount on gasoline at Shell stations.

• 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, January 11, 2019