PORTLAND, Ore., – Pump prices have been climbing in several states over the last couple weeks. In addition to rising demand for gas, 13 states have introduced new gas taxes this month which is putting upward pressure on the national average. For the week, the national average adds two cents to $2.75 a gallon. The Oregon average slips a penny to $3.21.
The 13 states that have introduced new gas taxes this month are California, Connecticut, Illinois, Indiana, Maryland, Michigan, Montana, Nebraska, Ohio, Rhode Island, South Carolina, Tennessee and Vermont.
“Gas prices are poised to move higher in July, although AAA doesn’t believe that the national average will jump above $3 a gallon,” says Marie Dodds, public affairs director for AAA Oregon/Idaho. “For now, pump prices in the West Coast and Rockies regions are moving a bit lower but still rank among the most expensive in the country.”
Oregon is one of 17 states where prices are lower now than a week ago. Utah (-4 cents) and Idaho (-3 cents) have the largest weekly decreases. Ohio (+8 cents) and Michigan (+6 cents) have the largest weekly increases. This week there are seven states with an average above $3 a gallon, down from eight a week ago.
Oregon is one of 31 states with lower prices now than a month ago. The national average is the same and the Oregon average is 12 cents less than a month ago. Arizona (-22 cents) has the largest month-over-month decline, while Ohio (+17 cents) has the largest monthly increase.
The West Coast continues to have the highest pump prices in the nation with all of the region’s states except Arizona landing on the top 10 most expensive list.
|Rank||Region||Price on 7/9/19|
California tops the list for the 16th consecutive week with Hawaii, Washington, Nevada, Alaska and Oregon rounding out the top six. Oregon is sixth for the ninth week in a row. Most state averages in the region have decreased on the week, with Alaska (-3 cents) seeing the largest decline.
The U.S. Energy Information Administration’s (EIA) recent report for the week ending on June 28 showed that West Coast gasoline stocks decreased slightly by approximately 200,000 bbl from the previous week and sit at 30.5 million bbl. The current level is similar to levels at this time last year, which could help prices stabilize if there is any disruption in supply or gas demand surges in the region this week.
The cheapest gas in the nation can be found in Mississippi ($2.35) and Arkansas ($2.38). For the 21st week in a row, no states have an average below $2 a gallon.
Oregon is one 47 states and the District of Columbia where drivers are paying less than a year ago. The national average is 11 cents less and the Oregon average is also 11 cents less than a year ago. New Mexico (-25 cents) has the largest year-over-year drop. California (+10 cents), Illinois (+9 cents) and Nevada (+5 cents) are the only states with year-over-year increases.
Oil Market Dynamics
Crude prices ended last week down from the previous week as global demand concerns continue to worry market observers as the U.S. and China continue to resolve their trade dispute. The fall in prices occurred despite EIA’s data showing that total domestic crude inventories fell by 1 million bbl to 468.5 million bbl. Moving into this week, if it appears that the U.S. and China are not closer to a trade resolution, crude prices could continue to decrease. However, if tension between the U.S. and Iran escalates, crude prices could surge amid market concerns of conflict in the Middle East, which could limit oil flows from the region.
At the close of Friday’s formal trading session on the NYMEX, WTI increased by 17 cents to settle at $57.51. At the close of Monday’s formal trading session on the NYMEX, WTI added 15 cents to $57.66. Today crude is trading around $58, compared to $56 a week ago. Crude prices are up about eight percent in the last month and are about $16 per barrel 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.
For the week, the national average remains at $3.00 a gallon. Oregon’s average holds steady at $3.21. A year ago the national average for diesel was $3.17 and the Oregon average was $3.43.
Find current fuel prices at GasPrices.AAA.com.
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Find local news releases at https://www.oregon.aaa.com/category/news-releases/