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Crude oil prices hit 4-year low amid OPEC disagreement and coronavirus concerns By: Jeanette Casselano & Devin Gladden The national gas price average is cheaper on the week (-5 cents), month (-5 cents) and year (-9 cents) – giving the vast majority of motorists savings at the pump. At $2.38, the national gas price average has not been this cheap since last February. “For the third week, U.S. gasoline stocks decreased while demand increased. Generally, growing demand amid declining stocks causes increases at the pump, but crude oil prices have dipped to four-year lows, signaling spring could be cheaper at the pump,” said Jeanette Casselano, AAA spokesperson. When the global markets opened on Sunday evening, West Texas Intermediate (WTI) crude oil prices dipped below $30/bbl for the first time since 2016. The market plunge is in response to a lack of agreement between Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC countries to cut production. The trend of pump prices facing downward pressure is likely to continue through the end of the winter driving season if crude remains cheap, especially amid concerns about the coronavirus. Quick Stats - Delaware sees one of the largest weekly decreases in gas prices • The nation’s top 10 largest weekly price decreases are: Indiana (-12 cents), Michigan (-11 cents), Illinois (-11 cents), Delaware (-8 cents), Iowa (-7 cents), Florida (-7 cents), South Carolina (-7 cents), Oklahoma (-7 cents), Wisconsin (-6 cents) and Missouri (-6 cents). • The nation’s top 10 least expensive markets are: Texas ($2.06), Mississippi ($2.07), Oklahoma ($2.07), South Carolina ($2.09), Louisiana ($2.10), Missouri ($2.10), Alabama ($2.11), Arkansas ($2.13), Kansas ($2.14) and Tennessee ($2.16). Mid-Atlantic and Northeast Motorists in the Mid-Atlantic and Northeast are paying gas prices that are cheaper on the week, but some state averages are more expensive compared to last month and last year at this time. On the week, prices range between two to eight cents cheaper. On the month, only Delaware (+7 cents) and Maryland (+2 cent) pump prices are more expensive. Some states in the region are seeing a month-over-month savings of as much as nine cents. Compared to March 2019, pump prices are as much as 17 cents cheaper. However, two states in the region have more expensive year-over-year averages including: Vermont (+8 cents) and Rhode Island (+1 cents). At the start of the work week, state averages range between $2.16 in Virginia to $2.57 in Pennsylvania. Regional refinery utilization has decreased for three weeks, now down to 56%. Stocks are also in decline-mode, with the latest EIA draw reported as 1.6 million down to 63.5 million bbl. Typically, with decreasing utilization and stock levels in a region gas prices increase. However, cheaper crude oil prices amid growing concerns of the coronavirus has helped to push pump prices less expensive. Oil Market Dynamics At the close of Friday’s formal trading session on the NYMEX, WTI decreased by $4.62 to settle at $41.28. Crude prices plunged at the end of last week after OPEC and other major crude producers, including Russia, failed to set a new production reduction agreement amid mounting global crude demand concerns caused by COVID-19. The rapid decline in crude prices has increased market concerns that an oil price war may breakout this week between major crude producers, contributing to further economic troubles worldwide as crude prices continue to drop dramatically. Moreover, the market continues to worry that the impact of COVID-19 will lead to a reduction in global economic growth and global travel, with crude demand expected to decrease. Until it appears that the international public health threat from the virus decreases, crude prices are likely to continue facing significant downward pressure. Motorists can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile. AAA provides automotive, travel, and insurance services to 60 million members nationwide and more than 148,000 members in Delaware. AAA advocates for the safety and mobility of its members and has been committed to outstanding road service for more than 100 years. AAA is a non-stock, non-profit corporation working 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 (AAA.com/mobile) for iPhone, iPad and Android. For more information, visit www.AAA.com.