VIRGINIA BEACH, Va. – Drivers in Virginia probably noticed higher prices at the pump as they hit the roads this holiday season.
AAA said drivers are starting the New Year with increased gas prices, at levels that have not been seen since 2014.
The current average price for gas in Virginia is $2.20 which is 17 cents higher than last month and a 40 cent increase from this time last year.
The average price for gas has gone up for 35 days straight in Virginia, according to AAA.
The price hikes are due to the latest OPEC deal signed late in 2016.
AAA says moving into 2017, retail prices will continue to hinge on the ability of cartel countries to successfully implement production cuts, but retail averages are likely to increase leading up to the summer driving season as seasonal refinery maintenance gets underway this spring.
Typically, domestic demand falls in January so higher gasoline production may lead to a stock build in the coming weeks and could have a bearish market impact on gasoline.
In 2017, traders will continue to monitor whether participating countries adhere to the OPEC agreement and the rate at which U.S. gasoline production increases.