PORTLAND, Ore., – For the first time in two months, the national average for regular gas has crept higher while the Oregon average continues to move lower. Higher crude oil prices are helping to fuel gas price increases in a third of all states, but pump prices should decrease again in the near future. For the week, the national average for regular adds a penny to $3.21 a gallon. The Oregon average falls five cents to $3.70 a gallon.
“Refinery issues in California are easing, which is helping to put downward pressure on pump prices on the West Coast. Several refineries in California had issues and/or have undergone refinery maintenance in the past few weeks, which led to tight supplies,” says Marie Dodds, public affairs director for AAA Oregon/Idaho.
This week, only one Oregon county still has an average above $4 a gallon: Wallowa ($4.20).
The Oregon average began 2024 at $3.79 a gallon compared to $3.70 today. Its lowest price so far this year is $3.58 on February 14 and the highest is nearly $4.51 on May 1. The national average started the year at $3.11 and is at $3.21 today. Its lowest price so far this year is just under $3.07 on January 15 and the highest is just under $3.68 on April 19.
Gas prices typically drop in the fall, due to the switch from summer-blend to winter-blend fuel, which costs less to produce. The switch starts in September. Many areas, including Oregon, can sell winter-blend fuel starting September 15. However, Northern and Southern California require summer-blend fuel through October 31.
U.S. crude oil prices (West Texas Intermediate) have climbed above $70 again this week on increased unrest in the Middle East and China’s stimulus moves. There are also concerns that the latest storm Helene could threaten production in the Gulf of Mexico. Oil prices rose last week after the Federal Reserve cut interest rates. WTI had been below $80 per barrel since mid-August, and even dipped below $70 for several days earlier this month to the lowest prices since June 2023 on global concerns of declining demand.
Crude prices are impacted by economic news as well as geopolitical events around the world including the war between Israel and Hamas, the war between Russia and Ukraine, and Houthi militant attacks in the Red Sea. In addition, production cuts by OPEC+ have tightened global crude oil supplies, which will continue to impact prices. And we’re in hurricane season, which runs from June 1 to November 30.
The price of crude oil reached the year-to-date high of nearly $87 per barrel on April 5. Major drivers of elevated crude prices have been the unrest in the Middle East, the decision by OPEC+ to keep oil production cuts in place, and Ukrainian attacks on Russian refineries. Russia is a top global oil producer, behind the U.S. and Saudi Arabia, and the refinery attacks have reduced output. Crude prices have been volatile after the attack on Israel by Hamas last October. While Israel and the Palestinian territory are not oil producers, concerns remain that the conflict could spread in the Middle East, which could potentially impact crude production in other oil-producing nations in the region.
Crude oil is trading around $71 today compared to $71 a week ago and $91 a year ago. In 2023, West Texas Intermediate ranged between $63 and $95 per barrel. Crude reached recent highs of $123.70 on March 8, 2022, shortly after the Russian invasion of Ukraine, and $122.11 per barrel on June 8, 2022. The all-time high for WTI crude oil is $147.27 in July 2008.
Crude oil is the main ingredient in gasoline and diesel, so pump prices are impacted by crude prices on the global markets. On average, about 56% of what we pay for in a gallon of gasoline is for the price of crude oil, 13% is refining, 16% distribution and marketing, and 15% are taxes, according to the U.S. Energy Information Administration.
Demand for gasoline in the U.S. increased slightly from 8.47 million b/d to 8.77 million b/d for the week ending September 13, according to the U.S. Energy Information Administration (EIA). This compares to 8.85 million b/d a year ago. Meanwhile, total domestic gasoline stocks remain flat at 221.6 million barrels, and gasoline production increased last week, averaging 9.7 million barrels per day compared to 9.4 million barrels the previous week.
Crude oil production in the U.S. is at 13.2 million barrels per day, according to the EIA. This remains near the record high of 13.4 million barrels per day last reached in August. The U.S. produces more crude oil than any other country, according to the EIA.
Lackluster gasoline demand, the switch to winter-blend fuel and relatively low oil costs will likely keep pump prices sliding in the coming weeks, barring additional refinery outages.
Quick stats
Oregon is one of 33 states and the District of Columbia with lower prices now than a week ago. Ohio (+18 cents) has the biggest week-over-week jump in the nation. Maine (-7 cents) has the largest weekly decrease. The average in Georgia is flat.
California ($4.73) has the most expensive gas in the nation for the third week in a row. Hawaii ($4.61) is second, and Washington ($4.10) is third. These are the three states with averages at or above $4 a gallon, down from four states a week ago. This week 32 states and the District of Columbia have averages in the $3-range. There are 15 states with an average in the $2 range this week.
The cheapest gas in the nation is in Mississippi ($2.72) and Texas ($2.78). No state has had an average below $2 a gallon since January 7, 2021, when Mississippi and Texas were below that threshold.
The difference between the most expensive and least expensive states is $2.02 this week, compared to $2.05 a week ago.
Oregon is one of 47 states and the District of Columbia with lower prices now than a month ago. The national average is 15 cents less and the Oregon average is 11 cents less than a month ago. Connecticut (-29 cents) has the largest month-over-month drop in the nation. Colorado (+14 cents) has the largest monthly increase in the nation.
All 50 states and the District of Columbia have lower prices now than a year ago. The national average is 64 cents less and the Oregon average is 97 cents less than a year ago. This is the fourth-largest year-over-year drop in the nation. Arizona (-$1.28) has the largest year-over-year drop.
West Coast
The West Coast region continues to have the most expensive pump prices in the nation with six of the seven states in the top 10. It’s typical for the West Coast to have six or seven states in the top 10 as this region tends to consistently have fairly tight supplies, consuming about as much gasoline as is produced. In addition, this region is located relatively far from parts of the country where oil drilling, production and refining occurs, so transportation costs are higher. And environmental programs in this region add to the cost of production, storage and distribution.
| Rank | Region | Price on 9/24/2024 |
| 1 | California | $4.73 |
| 2 | Hawaii | $4.61 |
| 3 | Washington | $4.10 |
| 4 | Nevada | $3.96 |
| 5 | Oregon | $3.70 |
| 6 | Alaska | $3.69 |
| 7 | Utah | $3.57 |
| 8 | Idaho | $3.54 |
| 9 | Colorado | $3.51 |
| 10 | Illinois | $3.44 |
As mentioned above, California ($4.73) has the most expensive gas in the country. Hawaii, Washington, Nevada, Oregon, and Alaska round out the top six. Arizona ($3.37) is 12th. Oregon is fifth for the sixth week in a row.
All states in the West Coast region are seeing small decline on the week: Nevada (-5 cents), California (-5 cents), Oregon (-5 cents), Washington (-4 cents), Arizona (-2 cents), Hawaii (-2 cents), and Alaska (-1 cent).
The refinery utilization rate on the West Coast rose from 88.6% to 90.0% for the week ending September 13. This rate has ranged between about 74% to 93% in the last year. The latest national refinery utilization rate dipped from 92.8% to 92.1%. The refinery utilization rate measures how much crude oil refineries are processing as a percentage of their maximum capacity. A low or declining rate can put upward pressure on pump prices, while a high or rising rate can put downward pressure on pump prices.
According to EIA’s latest weekly report, total gas stocks in the region dropped from 28.86 million bbl. to 27.80 million bbl.
An increase in the refinery utilization rate and/or a high rate can put downward pressure on pump prices, and a decrease in gasoline stocks can put upward pressure on pump prices.
Oil market dynamics
Crude oil prices have ticked up above $71 this week on news of economic stimulus in China and increasing unrest in the Middle East. Crude prices also rose last week after the Federal Reserve cut interest rates. Meanwhile, the EIA reports that crude oil inventories decreased by 1.6 million barrels from the previous week. At 417.5 million barrels, U.S. crude oil inventories are about 4% below the five-year average for this time of year.
At the close of Friday’s formal trading session, WTI slipped 3 cents to settle at $71.92. At the close of Monday’s formal trading session, WTI lost $1.55 to settle at $70.37. Today crude is trading around $71 compared to $71 a week ago. Crude prices are about $21 less than a year ago.
Drivers 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.
Diesel
For the week, the national average slips two cents to $3.58 a gallon. The record high is $5.816 set on June 19, 2022. The Oregon average dips two cents to $3.91. The record high is $6.47 set on July 3, 2022. A year ago the national average for diesel was $4.58 and the Oregon average was $5.23.
Find current fuel prices at GasPrices.AAA.com.
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Fuel prices are updated daily at AAA’s Daily Fuel Gauge at AAA Gas Prices. For more info go www.AAA.com. AAA Oregon/Idaho provides more than 900,000 members with travel, insurance, financial and automotive-related services, and is an affiliate of AAA National, serving more than 64 million motorists in North America.