PORTLAND, Ore., – Robust gasoline stocks and a recent dip in demand are putting downward pressure on pump prices. For the week, the national average for regular loses three cents to $2.76 a gallon. The Oregon average slips three cents to $3.17.
This is the first time in four weeks that the national average has seen a weekly decline. The Oregon average has been steadily edging lower since mid-May and is at its cheapest price since April. “Gasoline stocks here on the West Coast are nearly two million barrels higher than a year ago which is one reason why pump prices in this region are moving lower,” says Marie Dodds, public affairs director for AAA Oregon/Idaho.
Oregon is one of 47 states and the District of Columbia where prices are lower now than a week ago. Indiana (-15 cents) has the largest weekly decline. Hawaii (+1 cent) has the largest weekly increase. This week there are seven states with an average above $3 a gallon, same as a week ago.
Oregon is one of 11 states with lower prices now than a month ago. The national average is 10 cents more and the Oregon average is 7 cents less than a month ago. Utah (-18 cents) has the largest month-over-month decline, while Florida (+22 cents) has the largest monthly increase.
Oregon is one 46 states and the District of Columbia where drivers are paying less than a year ago. The national average is 8 cents less and the Oregon average is 12 cents less than a year ago. Delaware (-26 cents) has the largest year-over-year drop. Illinois (+14 cents) has the biggest year-over-year 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 7/23/19|
California tops the list for the 18th consecutive week with Hawaii, Washington, Nevada, Oregon and Alaska rounding out the top six. Oregon moves up to fifth most expensive after spending the last 10 weeks in sixth place.
Most state averages in the region have decreased on the week, with California (- 4 cents) seeing the largest decline. Hawaii (+1 cent) is the only state in the region with a week-over-week increase.
The U.S. Energy Information Administration’s (EIA) recent report for the week ending on July 12 showed that West Coast gasoline stocks grew by approximately 1 million bbl from the previous week and sit at 32 million bbl. The current level is almost 2 million bbl higher than last year at this time, 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 ($2.39) and Louisiana ($2.40). For the 23rd week in a row, no states have an average below $2 a gallon.
Oil market dynamics
Crude prices mostly declined last week after the International Energy Agency announced that it does not expect oil prices to rise significantly because demand is slowing and there is a glut in global crude markets. The IEA is reducing its 2019 oil demand growth forecast to 1.1 million barrels per day (bpd) from 1.2 million bpd due to a slowing global economy amid the continuing U.S.-China trade dispute.
Concerns over the current excess of oil in the crude market overshadowed concerns of increasing tension in the Middle East, following the United States announcing on Thursday that a U.S. Navy ship had “destroyed” an Iranian drone in the Strait of Hormuz. However, Iran captured a British-flagged oil tanker in the region late on Friday, dramatically escalating tensions. If tension continues to mount, oil prices could rise in response to concerns that global supply flows may be disrupted.
At the close of Friday’s formal trading session on the NYMEX, WTI increased by 33 cents to settle at $55.63. At the close of Monday’s formal trading session on the NYMEX, WTI added 59 cents to $56.22. Today crude is trading around $56, compared to $58 a week ago. Crude prices are down about two percent in the last month and are about $11 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 slips a penny to just under $3.00 a gallon. Oregon’s average ticks down a penny to $3.19. A year ago the national average for diesel was $3.16 and the Oregon average was $3.41.
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://www.oregon.aaa.com/category/news-releases/