AAA: Rising Oregon gas prices won’t hit old heights

Retail gas prices continue their February surge in Oregon and nationwide, AAA Oregon/Idaho reported Tuesday – but the fuel-monitoring organization doesn’t see a return to $3-a-gallon gas any time soon.

The national average for regular unleaded adds seven cents this week to $2.26 a gallon. Oregon’s average jumps 12 cents to $2.38 a gallon, says AAA Oregon/Idaho Public Affairs Director Marie Dodds.

Gas prices normally increase in February due to refinery maintenance, ahead of the switch to production of the cleaner-burning summer-blend fuel,” Dodds said.

“Still, prices are about a dollar a gallon cheaper than a year ago, and remain near six-year lows with the national and Oregon averages at their cheapest prices since May 2009,” she added.

Gas prices have been on the rise for the last two to three weeks. The national average had fallen for a record 123 days down to $2.03 a gallon before beginning to rise again on January 27. Oregon’s average fell for 69 consecutive days, bottoming out at $2.115 before increasing again on February 3.

Over the last five years, gas prices in February have risen by an average of 22 cents per gallon. In all, retail pump prices typically increase 30 to 50 cents during the spring

Even with gas prices trending higher, ample gasoline supplies and lower crude oil costs than in recent years should prevent prices from rising as high as in recent memory, Dodds said.

In addition, severe cold weather, particularly in the Northeast and Midwestern United States, may limit driving and gasoline demand in the near term. Barring any major disruptions in supply, AAA anticipates drivers will continue to pay below $3 per gallon throughout 2015, barring unforeseen events.

With prices increasing across the country, a shrinking number of states are registering an average below $2 per gallon — only Utah ($1.93) Idaho ($1.94) and Montana ($1.97) remain below this threshold.

Hawaii ($3.03) continues to lead the market and is the only state with an average above $3 per gallon. California ($2.80), Alaska ($2.57), New York ($2.46) and Nevada ($2.44) round out the nation’s top five most expensive markets for retail gasoline.

Weekly comparisons continue to show that nearly all drivers are paying more to refuel their vehicles.

The price at the pump has inched higher in 48 states, with 33 of these states registering increases of a nickel or more per gallon week-over-week.

Motorists in California (+15 cents), Arizona (+12 cents), Oregon (+12 cents) and Delaware (+11 cents) are experiencing the sharpest increases over this period. On the other end of the spectrum, the average price at the pump has fallen in Alaska (-5 cents), Hawaii (-2 cents) and Washington, D.C. (fractions of a penny) versus one week ago.

Two-week price comparisons also reflect overall increases in the price at the pump. The average price has jumped in the same 48 states and Washington, D.C., with the majority of states (41) registering double-digit premiums versus two weeks ago. California (+34 cents) and Oregon (+25 cents) are registering the largest increases in price over this period.

Consumers in 42 states are paying higher prices month-over-month, and the price is up by a dime or more in the bulk (33) of these states. Twelve states are posting increases of a quarter or more, led by the mid-continent states of Michigan (+36 cents), Kansas (+35 cents), Illinois (+34 cents), and Missouri (+33). The price at the pump is lower than one month ago in just eight states and Washington, D.C., headlined by Hawaii (-31 cents) and Alaska (-25 cents), where consumers are saving the most per gallon in comparison to one month ago.

Despite recently higher prices, year-over-year comparisons still reflect savings nationwide. Drivers in every state and Washington, D.C. are saving at the pump, and the average price is down by $1 or more in 46 states and Washington D.C.

OPEC’s decision not to act as a market-stabilizer is beginning impact global energy development, as companies in countries with more expensive production costs have reportedly begun curtailing investments and employment. The global price of Brent crude rallied this past week and closed above the $60 per barrel benchmark for the first time in 2015. This represents an increase of more than 30 percent since mid-January and is reflective of the global oil market’s overall volatility.

At the close of Friday’s formal trading on the NYMEX, WTI was up $1.57 (2.97 percent) to settle at $52.78 per barrel. Markets were closed yesterday for the Presidents’ Day holiday. Today WTI is trading around $53 a barrel, compared to $50 a week ago. Crude prices are up about 13 percent over the last month and are about $47 lower than a year ago.

Regular Unleaded

Current

Week Ago

Month Ago

Year Ago

Highest Rec. Avg. Price

Date

National Average

$2.259

$2.185

$2.076

$3.358

$4.114

7/17/2008

Oregon Average

$2.376

$2.260

$2.256

$3.304

$4.294

7/3/2008

Portland

$2.375

$2.255

$2.252

$3.286

$4.278

6/21/2008

Salem

$2.361

$2.239

$2.197

$3.254

$4.262

7/8/2008

Eugene/Springfield

$2.449

$2.329

$2.274

$3.360

$4.330

6/28/2008

Medford/Ashland

$2.440

$2.285

$2.231

$3.361

$4.379

7/11/2008

Bend

$2.386

$2.286

$2.233

$3.348

$4.345

6/20/2008

Vancouver, WA

$2.369

$2.263

$2.265

$3.315

$4.349

6/28/2008

For the 15 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. Three states are below $2 a gallon, down from five a week ago and 20 two weeks ago.

Hawaii has the most expensive gas in the country for the 121 st consecutive week at $3.03, followed by California at $2.80 (up 15 cents and second for the second week in a row), Alaska at $2.57, New York at $2.46 and Nevada at $2.44. Oregon is ninth up from 12 th last week at $2.38 (up 12 cents). Washington is 10 th up from 13 th at $2.36 (up 11 cents). Idaho is 50 th up from 51 st at $1.94 (up four cents). After two weeks, Utah bumps Idaho as the state with the cheapest gas in the nation at $1.93 a gallon (up a cent).

Diesel prices are also moving higher. The national average adds three cents to $2.84 a gallon. Oregon’s average jumps eight cents to $2.80. Diesel is at or above $4 a gallon in just one state, same as last week. Hawaii is most expensive at $4.47, followed by New York at $3.25, Connecticut at $3.21, Pennsylvania at $3.18 and California at $3.15 (up 11 cents and up from ninth last week). Washington is 14 th up from 18 th last week at $2.89 (up seven cents). Oregon is 28 th up from 35 th last week. Idaho is 34 th for the second consecutive week at $2.76 (up a penny). A year ago, the national average for diesel was $3.96 and Oregon’s was $3.88.

For the lowest citizen-reported gas prices in your area, visit KTVZ.COM’s Pump Patrol.