Gas prices unpredictable, but welcoming

Across Delaware and southeastern Sussex County, residents who spend substantial amount of time in their cars are likely pinching themselves. Just a couple months ago, on July 18, Delaware’s average price for a gallon of regular unleaded gas reached $3.12, only 11 cents shy of Delaware’s record of $3.23 in the wake of Hurricane Katrina last September.

But now, prices at the pump are teasing $2 a gallon, going as low as $2.10 this week. On Tuesday, partly “because of a complete absence of any supply disruption,” those regular unleaded prices sat at $2.11.

“At this time last year, we were still reeling from Katrina,” said Ela Voluck, AAA spokeswoman, who receives updates from the company’s oil experts each Tuesday. “Not even a single hurricane has threatened the Gulf region (this year).”

Lower demand in the slow-moving autumn season, as compared to the travel-heavy summer, has also contributed to lower prices. But healthy inventories of oil and gasoline in the U.S., despite an OPEC cut in barrel production, have been the major factor in the dramatic dip in prices, Voluck said.

Those healthy inventories are a direct result of the absence of storms, which wreaked havoc on the Gulf Region’s oil supply capabilities last August and September, she added. After climbing in the high-70s this summer, crude oil prices are now hovering at about $58 a gallon.

“That has maintained a steady price in Delaware and other places,” Voluck said, but still suggested that Delawareans use caution before exuding excitement about the prices. “The gas prices in Delaware are still falling but at a much slower pace than they were last month.”

As of Tuesday, the average price of regular unleaded had fallen 21 cents in one month and 46 cents cumulatively over the past year.

But while prices could continue to fall, another heavy travel season is approaching as Thanksgiving and Christmas near and a high demand on heating oil during the winter could produce a spike in prices, Voluck said. So while customers pinch themselves as they top off their tanks, they should also be crossing their fingers, the AAA spokeswoman implied.

“The only problem is (the gas prices are) very unpredictable. It could change overnight,” Voluck said. “We caution becoming too comfortable with the current prices, and even if prices continue to fall, it’s good to be cautious about the fact that they might jump back up at any moment.”