AAA: Oregon gas prices to stay high for summer

One week into the summer driving season, gas prices are ticking up, with Oregon’s prices at the highest level so far this year — and AAA Oregon/Idaho said Tuesday it sees little relief in coming months.

The national average for regular unleaded adds a penny this week to $3.67 a gallon, while Oregon’s average gains two cents to $3.90 a gallon, said AAA Oregon/Idaho Public Affairs Director Marie Dodds.

“The current Oregon average is the highest it’s been all year,” she said. “The national average is three cents less than its year-to-date high of $3.70 a gallon on April 28. The Oregon average is the same price as it was a year ago on this date. The current national average is a nickel more than it was a year ago.”

Entering the summer months, AAA expects that drivers will experience little relief at the pump.

The national average is expected to remain near the range of $3.55 to $3.70 per gallon, which is similar to last summer’s range of $3.47 to $3.67. Oregon’s average through the summer is expected to be in the neighborhood of $3.75 to $3.99.

Continuing geopolitical concerns, major refinery disruptions or a severe hurricane season, which runs June 1 to November 30, could send gas prices higher than anticipated in a jiffy, while the absence of such catalysts could allow prices to fall lower, Dodds said..

“We are seeing a greater demand for gasoline this year; national gasoline consumption in May was the highest since 2011 for the month, according to the U.S. Energy Information Administration,” Dodds said.

Peak gasoline demand generally occurs during the summer, and AAA expects this trend to remain true this year. In 2013, average gasoline consumption from June through August was about 5 percent higher than during other months of the year. Americans drove an estimated 788 billion miles during this period last year, according to the Federal Highway Administration.

Oregon is one of 38 states and the District of Columbia where pump prices have remained relatively stable (+/- 2 cents) over the past seven days. Consumers in Ohio (+10 cents), Indiana (+8 cents) and Michigan (+8 cents) are experiencing a bit of sticker-shock at the pump due to week-over-week price increases that are the highest in the nation.

Over the last several years, Midwestern gas prices have regularly been the most volatile in the country as refinery issues, supply bottlenecks and logistical issues have caused sometimes dramatic fluctuations.

As mentioned above, the current Oregon average is the same price as it was a year ago. But drivers in 22 states and the District of Columbia are paying premiums at the pump in the double-digits, led by Pennsylvania (+26 cents), South Carolina (+23 cents) and Kentucky (+23).

Conversely, consumers seven states are paying at least a quarter less per gallon: North Dakota (- 44 cents), Iowa (-36 cents), Minnesota (-36), Colorado (-32 cents), South Dakota (-32 cents), Nebraska (-28 cents) and Kansas (-26 cents).

The situation in Russia and Ukraine remains unresolved, and pro-Russian separatists continue to clash with Ukrainian military forces throughout the region.

However, analysts still report that the likelihood of a disruption in supply remains low, which was supported by Monday’s announcement that Russia plans to delay the introduction of a prepayment system for natural gas supplies to Ukraine.

At the close of Monday’s formal trading on the NYMEX, West Texas Intermediate (WTI) crude oil settled 24 cents lower at $102.47 per barrel. This marks the WTI’s 15 th consecutive settlement above the $100 per barrel threshold. WTI is about $10 a barrel more than it was a year ago.

Today, WTI is trading around $103, compared to $104 a week ago. Crude prices are up about three percent over the last month.

Highest Rec.

Current Week Ago Month Ago Year Ago Avg. Price Date

Oregon Statewide $3.895 $3.874 $3.879 $3.893 $4.294 7/03/08

Portland $3.886 $3.866 $3.884 $3.892 $4.278 6/21/08

Salem $3.892 $3.873 $3.873 $3.841 $4.262 7/08/08

Eugene/Springfield $3.920 $3.886 $3.923 $3.892 $4.330 6/28/08

Medford/Ashland $3.939 $3.919 $3.919 $3.868 $4.379 7/11/08

Bend $3.928 $3.867 $3.897 $3.890 $4.345 6/20/08

Vancouver, WA $3.930 $3.914 $3.933 $3.895 $4.349 6/28/08 Highest Rec.

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

For the 19 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 15th week in a row.

Hawaii has the most expensive gas in the country for the 84 th consecutive week at $4.36, followed by California at $4.12 (same price as last week and second most expensive for the 16 th week in a row), Alaska at $4.01, Connecticut at $3.92, and Washington at $3.91 (up a penny and fifth for the third week in a row).

Oregon is ninth after three weeks at seventh at $3.90 (up two cents). Idaho is 23 rd up from 27 th last week at $3.62 (up a penny). Arkansas bumps Missouri as the state with the cheapest gas in the nation at $3.40 a gallon (up a penny).

Diesel prices are holding fairly steady in most markets. The national average is flat at $3.92 a gallon. Oregon’s average adds one-and-a-half cents to $3.93. Diesel is at or above $4 a gallon in 19 states (including the District of Columbia), down from 21 last week.

Hawaii is most expensive at $4.85, followed by Connecticut at $4.36, New York at $4.29, Pennsylvania at $4.18, and California at $4.15 (same price as last week and up from sixth last week). Washington is ninth, up from 10 th last week at $4.04 (same as last week). Idaho is 16 th up from 17 th last week at $4.01 (same as last week). Oregon is 26 th up from 30 th last week. A year ago, the national average for diesel was $3.87 and Oregon’s was $3.96.

Check the lowest citizen-reported gas prices in your part of the High Desert at KTVZ.COM’s Pump Patrol page.