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Shrinking gas prices expected to continue

Posted on Wednesday, January 9, 2019 at 11:09 am

People around the Northern Neck may have recently found themselves putting a little extra fuel in the gas tank for the same amount of money. The last few weeks have seen a steady decline in fuel prices for the Northern Neck and several locations have dropped below the $2 a gallon mark. The last time Northumberland County saw gas prices below $2 was in the mist of the dramatic 2008 recession. Shortly thereafter gas prices rose up to over $4 per gallon before dropping back down to an average of $3.65.

The National average is currently $2.37 per gallon while Virginia’s statewide average is $1.87 per gallon. Texas has seen the lowest prices so far reportedly at $1.64.

The good news is that the prices are going to continue to fall as the supply and demand for gas is expected to continue to decline. The price of gas has steadily been dropping for 41 straight days.

According to Fox News, the United States is not an exporter of oil; the reserves are full and the economy has slowed which is what is causing the abundance of oil and the relief of high gas prices.

Changes in gasoline and diesel prices are reflected by crude oil prices. Those changes are determined in the global crude oil market by the worldwide demand for and supply of crude oil.

The current reason for the drop in prices is the abundance of crude oil already refined. The demand for gasoline has dropped in recent months, which has caused a surplus in the amount of petroleum in reserve.

For the full article, pick up the latest Northern Neck News 1/9/19