Cheer at pumps: Oregon gas prices hit 5-year low
Consumers are enjoying a holiday bonus with gas prices at their lowest level in five years, AAA Oregon/Idaho reported Tuesday.
For the week, the national average for regular unleaded skids 13 cents to $2.53 a gallon while Oregon’s average plunges 15 cents to $2.77.
AAA Oregon/Idaho Public Affairs Director Marie Dodds says, “AAA estimates drivers are saving more than $400 million each day compared to the high prices paid earlier this year.”
“Both the national and Oregon averages are more than a dollar lower from the 2014 peak prices,” Dodds says. “The national average peaked at $3.70 a gallon in April and the Oregon average peaked at $3.98 in July.”
The average price at the pump has fallen nearly 25 percent since the start of the year, and if the global price of crude continues to register new multi-year lows, these lower prices are likely to persist.
Barring any unexpected spikes in global prices, or declines in domestic production, the price at the pump should remain relatively low approaching the New Year and into 2015, AAA says.
Every state in the continental United States is posting an average price below the $3 per gallon benchmark. Hawaii ($3.69) and Alaska ($3.36), as is often the case, are the nation’s most expensive markets for retail gasoline.
In the lower 48 states, drivers in the Northeast are paying the most for gas: New York ($2.97) and Connecticut ($2.89). The nation’s least expensive markets are the Midwestern states of Missouri ($2.22) and Oklahoma ($2.27).
Gas prices are lower for the week, month and year in in all 50 states and Washington D.C. as a result of crude oil prices plummeting to multi-year lows. Retail pump prices are down by a nickel or more week-over-week in every state and Washington, D.C. Oregon is one of 41 states with savings of a dime or more. For the month, the price has dropped by 20 cents or more in every state during this span.
Yearly comparisons continue to reflect even more extreme discounts at the pump. With the exception of Hawaii (-23 cents) and Alaska (-31 cents), the price at the pump is down in every state and Washington, D.C. by more than 35 cents versus this same date last year. Oregon’s average is 51 cents lower than it was a year ago, and Oregon is one of 42 states posting a discount of 50 cents or more per gallon year-over-year.
Concerns of sluggish global oil demand combined with abundant supply continue to leave global oil markets searching for a bottom. Just two months ago market watchers were divided on the likelihood that the prices of West Texas Intermediate (WTI) would fall below $80 per barrel. Last week, for the first time since 2009, the price of WTI dropped below $60. WTI is now approximately 40 percent cheaper than the start of the year and nearly 50 percent below the high in June ($107.26).
The Organization of Petroleum Exporting Countries (OPEC) continues to maintain production levels, and the cartel’s three biggest members are reportedly ramping up exports to Asia in an effort to sustain market share in that region.
Reductions in global oil prices have led to a welcome savings at the pump for drivers; however sustained low prices could impact U.S. production, which is at its highest level in 30 years and has been a leading factor for the global oil market’s increase in supply.
However, the U.S. oil production is more expensive than its global counterparts. If oil prices continue to fall, this more expensive U.S. production could stop being profitable, which could take some production offline. Market watchers are also beginning to consider the potential for geopolitical instability in countries that are heavily dependent on oil exports to balance their budgets, including Venezuela and Nigeria.
WTI was down $2.14 to settle at $57.81 per barrel on Friday at the close of formal trading on the NYMEX.
At the close of Monday’s formal trading on the NYMEX, WTI fell $1.90 (3.4 percent) to $55.91 per barrel. Today WTI is trading around $56 a barrel, compared to $64 a week ago. Crude prices are down about 26 percent over the last month and are about $41 lower than a year ago.
Regular Unleaded
Current
Week Ago
Month Ago
Year Ago
Highest Rec. Avg. Price
Date
National Average
$2.526
$2.655
$2.893
$3.228
$4.114
7/17/2008
Oregon Average
$2.772
$2.922
$3.066
$3.284
$4.294
7/3/2008
Portland
$2.770
$2.910
$3.039
$3.275
$4.278
6/21/2008
Salem
$2.717
$2.912
$3.054
$3.235
$4.262
7/8/2008
Eugene/Springfield
$2.749
$2.903
$3.053
$3.313
$4.330
6/28/2008
Medford/Ashland
$2.753
$2.934
$2.970
$3.332
$4.379
7/11/2008
Bend
$2.754
$2.867
$3.040
$3.304
$4.345
6/20/2008
Vancouver, WA
$2.795
$2.899
$3.017
$3.281
$4.349
6/28/2008
For the sixth week in a row, there are no states with an average price for regular unleaded at or above $4 a gallon. Forty-eight states and Washington D.C. have averages below $3 per gallon, up from 47 states a week ago
Hawaii has the most expensive gas in the country for the 112 th consecutive week at $3.69, followed by Alaska at $3.36, New York at $2.97, the District of Columbia at $2.89, and Connecticut at $2.89. California is seventh at $2.85 (down 12 cents and down from sixth last week). Washington is eighth at $2.82 (down 15 cents and down from seventh last week). Oregon is ninth for the second consecutive week at $2.77 (down 15 cents). Idaho is 23 rd down from 16 th last week at $2.58 (down 23 cents). Missouri has the cheapest gas in the nation for the fourth week in a row at $2.22 a gallon (down 13 cents).
Diesel prices are also moving lower. The national average falls 11 cents to $3.38 a gallon. Oregon’s average nosedives 16 cents to $3.29. Diesel is at or above $4 a gallon in just one state, same as last week. Hawaii is most expensive at $4.75, followed by North Dakota at $3.84, New York at $3.68, Michigan at $3.67, and Alaska at $3.67. Idaho is 18 th down from 17 th at $3.49 (down a dime). Washington is 19 th up from 20 th last week at $3.46 (down 12 cents). California is 20 th down from 18 th last week at $3.46 (down 13 cents). Oregon is 36 th down from 32 nd last week. A year ago, the national average for diesel was $3.85 and Oregon’s was $3.86.
Check KTVZ.COM’s Pump Patrol for the lowest citizen-reported gas prices on the High Desert, courtesy of GasBuddy.com
