BOISE – As tensions flare in the Middle East, market insecurity is pushing crude oil prices higher, and the effects may soon be felt at the pump.
Crude oil dynamics
The West Texas Intermediate benchmark for crude oil is currently trading near $77 per barrel after remaining at or below the $70 mark for nearly a month. The cost of crude has soared in the past few days, with escalating conflicts between Iran and Israel a likely contributor to the surge.
“Israel has announced intentions to respond to Iran’s recent missile strike, and that response may include Iran’s oil infrastructure,” says AAA Idaho public affairs director Matthew Conde. “Even a potential loss of oil production can have global impact that may stymie the price drops we would normally see this time of year.”
Current gas prices
Today’s price for a gallon of regular gasoline in the Gem State is $3.46, which is three cents less than a week ago, 12 cents less than a month ago and 62 cents less than a year ago. Meanwhile, the national average currently sits at $3.17 per gallon, which is four cents less than a week ago, 11 cents less than a month ago and 55 cents less than a year ago.
Idaho jumps up to 8th in the country for most expensive gas behind California ($4.68), Hawaii ($4.58), Washington ($4.03), Nevada ($3.91), Oregon ($3.67), Alaska ($3.66), and Utah ($3.47).
According to the Energy Information Administration, U.S. refinery production is currently at 87.6% of capacity, down 3.3% from a week ago. Rockies refineries are at 87.7% of capacity, a decrease of 3.6% from a week ago.
The EIA further reports that gasoline demand fell by 700,000 barrels per day for the week. Domestic crude oil production is up 400,000 barrels per day from a year ago. Crude imports are also up 400,000 barrels per day from a year ago, and exports are up 1 million barrels per day.
“Lower refinery activity, a drop in gasoline demand and a rise in crude inventories are typical this time of year, and pump prices have fallen since Labor Day. But the sudden reversal in crude oil is a shock to the system,” Conde said. “If higher crude prices persist, we may be playing the waiting game for gas savings – we may even start heading in the opposite direction in the coming days.”
AAA urges drivers to conserve fuel by bundling errands and avoiding heavy stop-and-go traffic.
Here’s a look at Idaho gas prices as of 10/7/24:
- Boise – $3.49
- Coeur d’Alene – $3.23
- Franklin – $3.53
- Idaho Falls – $3.36
- Lewiston – $3.37
- Pocatello – $3.49
- Rexburg – $3.45
- Twin Falls – $3.47