Gas prices on the rise again

Gas prices on the Eastern Shore have risen as much as 30 cents a gallon over the last few weeks.   

Early in October,  gas prices ranged  in the $3.49 area for regular gas at Eastern Shore gas stations. 

Prices are up in spite of efforts by President Biden to release oil from the US strategic reserves last month.

Gas prices rose across the nation, but analysts say they expect pump prices to level off in coming days and weeks.

AAA Mid-Atlantic says the average price of a gallon of regular gas in Virginia on Friday was $3.48, up eighteen cents from last month. Drivers were paying $3.29 a gallon on average a year ago at this time. The Eastern Shore’s average gas prices are among the highest in Virginia.

The national average price for a gallon of regular gasoline was $3.79, up three cents from last week. Drivers were paying $3.41 a gallon on average a year ago at this time.

Analysts expect supplies to increase as refinery maintenance comes to an end, which will likely lead to stabilized if not declining gas prices.

According to new data from the Energy Information Administration (EIA), gas demand dipped slightly from 8.93 million b/d to 8.66 million b/d last week, and total domestic gasoline stocks decreased by 1.3 million bbl to 206.6 million bbl. Tighter supply and fluctuating oil prices have put upward pressure on gasoline prices. Pump prices could continue to increase if supply remains tight alongside rising oil prices.  

At the close of Wednesday’s formal trading session, WTI increased by $1.63 to settle at $90. Crude prices rose yesterday after the EIA reported that total domestic crude stocks declined by 3.1 million bbl last week. However, the price of oil faced strong headwinds earlier this week as ongoing market concerns regarding the likelihood of a recession increase. If economic growth stalls or reverses course, crude demand is likely to follow suit alongside prices.