PORTLAND, Ore., – Pump prices continue to inch up in most states but Oregon drivers are seeing a small decline. Gas prices often start to rise this time of year as winter eases and demand for gas creeps higher. For the week, the national average for regular adds two cents to $3.15 a gallon. The Oregon average dips two cents to $3.60.
The national and Oregon averages are at their lowest prices since July 2021. All counties in Oregon except Curry ($4.24) have averages below $4 a gallon. Gas prices have been fairly stable since the start of the year. The national average has ranged between a low of $3.07 and a high of $3.15. The Oregon average has ranged between $3.60 and $3.79 so far in 2024.
“We’ll see more movement in the coming weeks because we’re entering the time of year when pump prices begin their seasonal climb. But unless a major development shocks the global oil market, gas prices will likely inch up for now instead of rocketing higher,” says Marie Dodds, public affairs director for AAA Oregon/Idaho.
Gas prices normally rise in the first and second quarters of the year. The factors include refinery maintenance season, the normal seasonal growth in demand, and the switch from winter-blend fuel to summer-blend, which is more expensive to produce. Summer-blend gas helps reduce emissions from gasoline during the warm summer months. More info on summer- and winter-blend gasoline can be found at the EPA website.
Crude oil prices rose last week to their highest prices since November but have since moved a few dollars lower. Crude prices continue to be volatile on concerns surrounding mounting geopolitical tensions in the Middle East. Prices rose to start this week after the U.S. conducted retaliatory strikes in Iraq and Syria in response to last week’s deadly drone attack on U.S. troops. Concerns also remain surrounding the conflict between Israel and Hamas, and ongoing attacks on commercial vessels in the Red Sea. While Israel and the Palestinian territory are not oil producers, there’ve been concerns that the conflict could spread in the Middle East, which could potentially impact crude production in other oil-producing nations in the region.
Also, a strong dollar is putting some downward pressure on crude oil prices. The dollar rose to its highest level in more than two months Monday on positive U.S. economic news. Crude oil is bought and sold in U.S. dollars, and a higher dollar makes crude more expensive for buyers using other currencies, which can curtail demand.
Crude oil is trading around $73 today compared to $78 a week ago and $74 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, 8% is refining, 19% distribution and marketing, and 16% are taxes, according to the U.S. Energy Information Administration.
Demand for gas in the U.S. increased from 7.89 to 8.14 million b/d for the week ending January 26, according to the U.S. Energy Information Administration (EIA). This compares to 8.49 million b/d at the same time last year. Meanwhile, total domestic gasoline stocks increased by 1.1 million bbl to 254.1 million bbl.
Higher gas demand and fluctuating oil prices have contributed to increasing pump prices. If oil prices continue to face upward pressure, drivers will likely see pump prices rise.
Quick stats
Oregon is one of 13 states and the District of Columbia with lower prices now than a week ago. Utah (+14 cents) has the largest week-over-week gain and is the only state where prices changed by a dime or more week-over-week. New Mexico (-7 cents) has the biggest weekly drop.
Hawaii ($4.67) has the most expensive gas in the nation for the fourth week in a row. California ($4.58) is second. These are the only two states with averages at or above $4, same as a week ago. This week 22 states and the District of Columbia have averages in the $3-range. Twenty-six states have averages in the $2 range this week.
The cheapest gas in the nation is in Oklahoma ($2.68) and Wyoming ($2.68) and. 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 $2.00 this week, compared to $2.02 a week ago.
Oregon is one of 20 states with lower prices now than a month ago. The national average is six cents more and the Oregon average is 15 cents less than a month ago. This is the third-largest monthly drop in the nation. Ohio (+34 cents) has the largest monthly increase. Idaho (-23 cents) has the largest month-over-month decrease.
All 50 states and the District of Columbia have lower prices now than a year ago. The national average is 33 cents less and the Oregon average is 18 cents less than a year ago. Colorado (-$1.18) has the largest yearly decrease.
West Coast
The West Coast region continues to have the most expensive pump prices in the nation with all 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.
As mentioned above, Hawaii has the most expensive gas in the country for the fourth week in a row. California, Washington, Nevada, Oregon, and Alaska round out the top six. Arizona is 10th. Oregon is fifth most expensive for the 16th week in a row.
Four of the seven states in the West Coast region are seeing week-over-week increases: Arizona (+8 cents), California (+6 cents), Nevada (+5 cents), and Alaska (+1 cent). Washington (-3 cents), Oregon (-2 cents) and Hawaii (-1 cent) have week-over-week declines.
The refinery utilization rate on the West Coast fell from 81.5% to 79.1% for the week ending January 26. This rate has ranged between about 73% to 96% in the last year. The latest national refinery utilization rate dropped from 85.5% to 82.9%.
According to EIA’s latest weekly report, total gas stocks in the region rose from 31.92 million bbl.to 32.69 million bbl.
A lower refinery utilization rate can put upward pressure on pump prices, while an increase in gasoline stocks can put downward pressure on pump prices.
Oil market dynamics
Crude oil prices rose to their highest prices since November last week, but have slipped a few dollars since then. Oil prices rose to start this week after the U.S. launched retaliatory strikes against Iranian forces in Iraq and Syria, in response to the deadly drone attack on U.S. troops. Meantime, a stronger U.S. dollar is limiting increases in crude prices.
At the close of Friday’s formal trading session, WTI fell $1.54 to settle at $72.28. At the close of Monday’s formal trading session, WTI added 50 cents to settle at $72.78. Today crude is trading around $73 compared to $78 a week ago. Crude prices are about $1 lower 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 adds one cent to $3.93 a gallon. The record high is $5.816 set on June 19, 2022. The Oregon average loses two cents to $4.15. The record high is $6.47 set on July 3, 2022. A year ago the national average for diesel was $4.62 and the Oregon average was $4.78.
Find current fuel prices at GasPrices.AAA.com.
AAA news releases, high resolution images, broadcast-quality video, fact sheets and podcasts are available on the AAA NewsRoom at NewsRoom.AAA.com.
Find local news releases at https://oregon.aaa.com/community/media/media-contacts.html
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 890,000 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.