The Week

Drivers across the District of Columbia and the Washington, D.C. metro area are benefitting from a mid-winter slump at the pump. Pump prices are below $2 per gallon at around 3,500 gas stations across the 20 states. Those filling stations comprise a fraction of the 130,000 gas stations across the nation. However, the number of gas stations selling gasoline for less than $2 a gallon could double by Super Bowl Monday, according Tom Kloza, a founder of the Oil Price Information Service (OPIS).

Gasoline and crude oil inventories have increased while the demand for gasoline has decreased, leading to another week of lower prices. Crude oil prices have dropped $9.62 per barrel (16%) and are on track to continue that trend on the heels of fears over the coronavirus. Prices in the District of Columbia and metro area have seen at least a four-cent drop in the last week and are now within 18 cents of where they were this time last year.

Today’s national gas price average is $2.48, down five cents in the last week, down a penny in the last month and up 23 cents from this time last year.

CURRENT AND PAST GAS PRICE AVERAGES

Regular Unleaded Gasoline (*indicates record high)

At the close of NYMEX trading Friday, West Texas Intermediate (WTI) crude oil settled at $51.56 per barrel, $2.63 less than last Friday’s close. Crude oil prices have become another target of the coronavirus outbreak in China. As more airlines cancel flights to China’s major cities and the World Health Organization declares a global health emergency, worries rise over the potential economic impact from the continued spread of the virus, further pushing the price of crude lower.

The Weekend

“Local drivers continue to benefit from another week of lower prices at the pump, a result of lower crude prices, lower demand and increases in gas and oil stocks,” says John B. Townsend II, manager of Public and Government Affairs for AAA Mid-Atlantic. “The slump at the pump should continue through the middle of February, especially if crude oil prices continue to slide.”

The Week Ahead

In the January 2020 update of its Short-Term Energy Outlook (STEO), the U.S. Energy Information Administration (EIA) forecasts that U.S. crude oil production will average 13.3 million barrels per day (b/d) in 2020, a 9% increase from 2019 production levels, and 13.7 million b/d in 2021, a 3% increase from 2020.

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, January 31, 2020

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AAA provides automotive, travel and insurance services to 60 million members nationwide and nearly 82,000 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