VIRGINIA BEACH — Fears of a global economic recession caused oil prices to plunge sharply, minimizing the rise in pump prices last week, according to AAA Tidewater.
Domestic gas demand fell from 9.47 million barrels per day to 8.28 million barrels per day, according to the Energy Information Administration (EIA), while domestic gasoline inventories increased by 2 million barrels to 209.5 million barrels.
AAA Tidewater Public Relations Specialist Ryan Adcock said: “If demand continues to decline coupled with falling oil prices, drivers could see price gains at the pump start to slow and even fall throughout the week.”
The national average pump price for a gallon of gasoline has fallen 3 cents over the past week. The national average of $3.88 on Monday is 20 cents higher than a month ago and 56 cents higher than a year ago.
The federal-wide price rose to $3.57, 8 cents higher than a week ago and 16 cents higher than a month ago. At Hampton Roads, prices rose 10 cents to $3.56, 23 cents higher than last month and 38 cents higher than a year ago.
oil market dynamics
Oil prices fell last week in response to global economic uncertainty, a trend that could push interest rates higher globally and lead to a recession, the AAA said, adding that if a recession were to occur, oil He added that prices are likely to fall with demand.
According to the EIA’s latest weekly report, total commercial crude stocks increased by 9.9 million barrels to 439.1 million.
The driver AAA TripTik Travel Planner.