HAMPTON ROADS, Va. - Oil prices are at the lowest it has been since August as people fear a possible COVID-19 global economic slowdown.
AAA Tidewater reports pump prices are continuing to drop with oil prices into the mid $60s per barrel, which is a price not seen since August.
They say what is also helping to ease prices was the decision by OPEC and its oil-producing allies not to cut production. The national average for a gallon of gas dipped 4 cents on the week to $3.35.
According to AAA Tidewater, gas prices were last this low on October 20. Today's national average is seven cents less than a month ago and $1.19 more than a year ago.
In Virginia, the average gas price dropped two cents to $3.22. In Hampton Roads, prices dropped two cents to $3.17, which is ten cents lower than last month and $1.06 higher than a year ago.
December 6, 2021 | Week Ago | Month Ago | Year Ago | |
National | $3.35 | $3.39 | $3.42 | $2.16 |
Virginia | $3.22 | $3.24 | $3.29 | $2.08 |
Hampton Roads | $3.17 | $3.19 | $3.27 | $2.11 |
Richmond | $3.20 | $3.22 | $3.27 | $2.12 |
"Consumers may be catching a break at the pump right now, but it's not for a very good reason," said Ryan Adcock, AAA Tidewater public relations specialist. "A potential COVID-19 induced economic slowdown hurts everyone and could prompt OPEC to slash production if oil prices drop too low."
On December 2, OPEC and its allies, OPEC+, announced it would raise production by 400,000 b/d in January. AAA says the move was likely in response to Biden's call to increase supply to tame high fuel prices.
This week, AAA says crude oil prices could continue to fluctuate. They say market watchers will keep a close eye on crude oil inventories and the impact that the omicron variant has on demand.
