AAA: Oregon gas prices lowest in nearly 6 years

Drivers in the U.S. are paying the lowest average gas prices in nearly six years, and the national average is likely to slide below $2 per gallon before the end of the month, AAA Oregon/Idaho reported Tuesday.

For the week, the national average slips six cents to $2.05 per gallon. The Oregon average falls nine cents, to $2.23 a gallon. Both averages are at their lowest prices since April 2009, said AAA Oregon/Idaho Public Affairs Director Marie Dodds.

“AAA expects the national average to remain below $3 per gallon in 2015, barring any major fluctuations in the global price of crude oil,” she added.

Pump prices are directly connected to the global price of crude oil, with crude costs accounting for more than half of the price of gasoline.

Like pump prices, crude oil prices have also posted multi-year lows due to global supply outpacing demand, which has kept downward pressure on the price of crude and ultimately meant hefty discounts in retail gasoline for U.S. drivers.

Since last June. West Texas Intermediate crude has lost more than half of its value, falling from $107 to below $50 per barrel.

Retail averages across the country continued to march lower over the past seven days, with consumers in Wyoming (-13 cents), Connecticut (-12 cents) and Washington (-12 cents) experiencing the largest weekly savings.

Averages are down in 48 states and Washington, D.C. week-over-week, with 38 states and Washington, D.C. registering savings of a nickel or more per gallon. The only states to buck this trend are the Midwestern states of Ohio (+2 cents) and Minnesota (+2 cents) where prices have risen slightly versus this time last week.

The national average has dropped a record 117 consecutive days, for a total a savings of $1.29 per gallon during this stretch. The Oregon’s average has declined for 56 days in a row, falling 82 cents during this time.

Drivers in 25 states are paying averages below $2 per gallon; up 18 from one week ago. For the second week in a row the mid-continent region features the nation’s least expensive states for retail gasoline, led by: Missouri ($1.76) and Oklahoma ($1.80).

Hawaii ($3.31) remains the only state with an average above $3 per gallon, and is joined by Alaska ($2.82) and New York ($2.50) as the nation’s only states posting averages at or above $2.50 per gallon.

Monthly and yearly comparisons continue to reflect that U.S. motorists are universally experiencing savings at the pump. The largest month-over-month discounts are seen in the Mountain States of Utah (-60 cents), Wyoming (-56 cents) and Idaho (-54 cents). Oregon is one of 47 states and Washington, D.C. where gas prices are at least a quarter lower than a month ago.

Drivers in 48 states, including Oregon, and Washington, D.C. are saving more than $1 per gallon compared to a year ago, while only the nation’s most expensive markets Hawaii (-69 cents) and Alaska (-83 cents) are outside of this trend. The steepest declines are in Illinois (-$1.37) and Michigan (-$1.36).

While increased seasonal demand and maintenance at refineries may result in a typical 30- to 50-cent increase in pump prices this spring, a major global price recovery is unlikely to be the horizon, absent any major market disruptions or geopolitical events.

These sustained lower prices would be a result of projected shifts in the balance between global oil supply and demand. This shift has been keyed by increased crude oil production in the United States and Canada and was accelerated by OPEC’s decision this fall to sustain production levels despite declines in the price of crude by electing to allow the market to self-regulate.

By not continuing its traditional role as a market stabilizer and adjusting production to sustain higher prices, OPEC has put pressure on high-cost, oil-production countries such as the United States and Canada. Both countries are reportedly starting to respond by easing domestic production forecasts and trimming operations and administrative costs.

Crude prices are less than half of what they were six months ago, and sustained low prices will also continue to test the resiliency of countries that rely on oil revenue to fund government services.

The spread between Brent Crude and WTI continues to narrow, and stood at $1.48 a barrel at the close of formal trading on Friday. Less than one year ago WTI was trading at discount of $10 per barrel and the last time Brent fell below WTI was in 2010.

At the close of Friday’s formal trading on the NYMEX, WTI closed up $2.44 (+5.01 percent) to $48.69 per barrel. Today WTI is trading around $46 a barrel, compared to $45 a week ago. Crude prices are down about 16 percent over the last month and are about $45 lower than a year ago.

Regular Unleaded

Current

Week Ago

Month Ago

Year Ago

Highest Rec. Avg. Price

Date

National Average

$2.054

$2.117

$2.428

$3.284

$4.114

7/17/2008

Oregon Average

$2.226

$2.322

$2.667

$3.301

$4.294

7/3/2008

Portland

$2.224

$2.325

$2.675

$3.302

$4.278

6/21/2008

Salem

$2.173

$2.250

$2.582

$3.244

$4.262

7/8/2008

Eugene/Springfield

$2.233

$2.317

$2.654

$3.341

$4.330

6/28/2008

Medford/Ashland

$2.208

$2.299

$2.622

$3.384

$4.379

7/11/2008

Bend

$2.223

$2.337

$2.640

$3.272

$4.345

6/20/2008

Vancouver, WA

$2.224

$2.330

$2.693

$3.347

$4.349

6/28/2008

For the 11 th week in a row, there are no states with an average price for regular unleaded at or above $4 a gallon. Forty-nine states and Washington D.C. have averages below $3 per gallon, same as last week. Twenty-five states are below $2 a gallon, up from 18 a week ago.

Hawaii has the most expensive gas in the country for the 117 th consecutive week at $3.31, followed by Alaska at $2.82, New York at $2.50, California at $2.50 (down eight cents and fourth for the fourth week in a row), and the District of Columbia at $2.45. Washington is 10 th down from ninth last week at $2.24 (down 11 cents). Oregon is 11 th for the second consecutive week at $2.23 (down 11 cents). Idaho is 46 th down from 43 rd last week at $1.89 (down six cents). Missouri has the cheapest gas in the nation for the ninth week in a row at $1.76 a gallon (same as last week).

Diesel prices are also falling and both the national and Oregon averages are less than $3 a gallon. The national average loses a dime to $2.89 a gallon. Oregon’s average plunges 12 cents to $2.74.

Diesel is at or above $4 a gallon in just one state, same as last week. Hawaii is most expensive at $4.62, followed by New York at $3.36, Alaska at $3.29, Connecticut at $3.27 and the District of Columbia at $3.20. California is ninth up from 10 th at $3.05 (down a dime). Washington is 28 th down from 23 rd last week at $2.87 (down 12 cents). Idaho is 32 nd down from 31 st last week at $2.85 (down nine cents). Oregon is 41 st down from 38 th last week. A year ago, the national average for diesel was $3.85 and Oregon’s was $3.87.

For the lowest citizen-reported gas prices in your area of the High Desert, visit KTVZ.COM’s Pump Patrol , powered by GasBuddy.com.