AAA: Oregon gas prices stable as holiday nears

As Memorial Day and the start of the summer driving season approach, pump prices across the country are holding steady or even inching down, AAA Oregon/Idaho reported Tuesday.

The national average for regular unleaded remains at $3.64 a gallon this week, while Oregon’s average is flat at $3.87 a gallon.

AAA Oregon/Idaho Public Affairs Director Marie Dodds says, “The national average is a penny more than it was a year ago on this date, while Oregon’s average is a dime less.”

AAA projects 36.1 million Americans, or 11 percent of the population, will travel 50 miles or more from home during the Memorial Day holiday weekend, a 1.5 percent increase compared to last year.

In fact, 2014 is shaping up to be the second-busiest Memorial Day travel holiday since 2000, with travel volume expected to hit a new post-recession high. The Memorial Day holiday travel period is defined as Thursday, May 22 to Monday, May 26.

In the Pacific Region (AK, CA, HI, OR, WA), Memorial Day travel is expected to increase by 1.8 percent, with 5.8 million or 11 percent of the population taking trips.

Most people traveling over the Memorial Day holiday will do so by car, with about 31.8 million Americans planning to drive to their destinations, an increase of 1.2 percent compared to last year. The number of auto travelers is at its highest volume since 2005.

Almost nine out of ten holiday travelers (88 percent) will take to the nation’s roadways during the Memorial Day weekend keeping automobile travel in the traditional lead as the dominant mode of holiday travel transportation.

The national average ended a 16-day streak of daily declines last week, but has still dropped on 19 of the last 22 days.

Reported increases in retail demand due to warmer temperatures are adding some upward pressure on wholesale prices, and the rise in demand is beginning to outpace the increases in supplies.

Even with these minor fluctuations in price, the national average is expected to remain well below last year’s peak price of $3.79 per gallon, reached on February 27. Oregon’s average is also expected to stay below last year’s peak price, which was $3.98 a gallon on May 22.

Over the past week, drivers in 35 states have seen a modest discount at the pump, led by: Iowa (- 6 cents), California (- 4 cents), and Nebraska, Florida, Alabama and Maine (-3 cents). The price at the pump in the majority (30) of states now reflects a month-over-month discount. Oregon is one of 20 states where prices are higher than they were a month ago (+6 cents).

It’s too early to say for certain, but it appears pump prices may have peaked for the spring, AAA said.

The national average reached its high for the year so far of $3.70 a gallon on April 28. In 2011, the national average peaked at $3.98 per gallon on May 5. In 2012 the national average peaked at $3.94 per gallon on April 5.

The Oregon average reached its year-to-date high of $3.88 on May 2. The peak price in Oregon for 2011 was $3.97 on May 6. In 2012, it was $4.27 on June 1, and the 2013 peak came on May 22 at $3.98 a gallon.

Political tensions between Russia and Ukraine continue to keep global markets on edge and are being closely monitored by market watchers for any signs of escalation.

Last Friday, President Putin sent a letter to European Union governments indicating that a disruption in supply may be on the horizon. Although analysts report the probability of a long-term disruption is relatively low, a cutoff of supply by Russia could have ripple effects that would be felt in Europe and the United States. At Monday’s close of formal trading on the NYMEX, West Texas Intermediate (WTI) crude oil settled 59 cents higher at $102.61 per barrel.

Today WTI is trading around $102, compared to $101 a week ago. Crude prices are down about two percent over the last month.

For the eighth week in a row, there are two states with regular unleaded at or above $4 a gallon: Hawaii and California.

For the 17 th week in a row, there are no states with an average below $3 per gallon, and no states within a dime of this mark for the 13th week in a row.

Hawaii has the most expensive gas in the country for the 82 nd consecutive week at $4.37, followed by California at $4.15 (down three cents and second most expensive for the 14 th week in a row), Alaska at $3.99, Connecticut at $3.92, and Washington at $3.89 (same price as last week and up from sixth place).

Oregon is seventh for the second consecutive week at $3.87 (same as last week). Idaho is 25 th up from 26 th last week at $3.62 (up a penny). Missouri has the cheapest gas in the nation for the third consecutive week at $3.39 a gallon (up two cents).

Diesel prices are holding steady or down slightly in most markets. The national average falls a penny to $3.93 a gallon. Oregon’s average remains at $3.91.

Diesel is at or above $4 a gallon in 21 states (including the District of Columbia), same as last week. Hawaii is most expensive at $4.85, followed by Connecticut at $4.38, New York at $4.30, Pennsylvania at $4.21, and California at $4.15 (down a penny and fifth for the second week in a row).

Idaho is 10 th down from ninth last week at $4.05 (down two cents). Washington is 16 th up from 18 th last week at $4.03 (down a penny). Oregon is 31 st for the second week in a row at $3.91. A year ago, the national average for diesel was $3.89 and Oregon’s was $4.00.

Check the latest citizen-reported pump prices across the High Desert at KTVZ.COM’s Pump Patrol.