AAA: Oregon gas prices make surprise jump
Retail gas prices have unexpectedly jumped in many areas of Oregon over the past week, which AAA Oregon-Idaho said Tuesday was due to a decline in gasoline stocks caused by high fuel demand and persistent refinery problems that limited production.
For the week, the national average for regular unleaded climbs a nickel to $2.80 a gallon, while Oregon’s average also adds a nickel, to $3.07.
The Oregon average is at its year-to-date high,” said AAA Oregon-Idaho Public Affairs Director Marie Dodds.
The national average slipped one tenth of a cent from its year-to-date high of $2.804 on Monday.
Dodds said, “Barring unforeseen events, market-watchers continue to predict that gas prices are nearing their seasonal highs due to the completion of seasonal refinery maintenance and abundant crude oil supplies.”
“Despite the recent increases, consumers continue to enjoy significant year-over-year savings, with the national average 86 cents less and Oregon’s average 85 cents per gallon less than a year ago,” she added. “In fact, U.S. drivers are still expected to pay the lowest gas prices in at least five years.”
California is one of four states where motorists are experiencing weekly savings at the pump, yet it remains the nation’s most expensive market for retail gasoline.
Refinery problems persist in Southern California, which means any additional, unexpected problems could quickly lead to higher prices in the region, AAA said. This risk may help keep West Coast prices relatively high compared to the rest of the country. The Golden State is followed by Alaska, Hawaii, Nevada, Washington and Oregon. In all, eight states have averages at or above $3 per gallon.
While the West Coast continues be the nation’s most expensive region for gasoline, it is closely followed by the Midwest, where a drawdown in gasoline stocks and issues at regional refineries have combined to push prices dramatically higher. Drivers in South Carolina ($2.49) and Mississippi ($2.53) are paying the lowest averages at the pump.
On the whole, pump prices are trending higher week-over-week. Averages have moved higher in 46 states, including Oregon, and Washington, D.C. over this same period. The largest jumps in price were in the Midwestern states of Indiana (+28 cents) and Michigan (+25 cents).The only states with weekly declines are California (-8 cents), Nevada (-3 cents) and Arizona (-2 cents) and New Mexico (fractions of a penny).
Monthly price comparisons also reflect higher averages for American drivers. Oregon is one of 47 states and Washington D.C. where consumers are paying more at the pumps. The states posting the most dramatic month-over-month increases in price include: Michigan (+33 cents) and Illinois (+25 cents). The only three states where prices have moved lower in the last month are the Western states of California (-28 cents), Nevada (-6 cents) and Arizona (-4 cents).
Retail averages remain significantly discounted year-over-year, with the majority of drivers (45 states and Washington, D.C.) saving more than 75 cents per gallon. The largest discounts in the price at the pump are in Ohio (-$1.04), Hawaii (-$1.02) and Kentucky (-$1.01).
Even though regional refinery issues have driven the recent increases in pump prices, the cost of crude oil remains the underlying factor in the price drivers pay at the pump.
Market analysts continue to suggest that ample crude oil supply will outpace global demand and characterize oil markets in the near term. Saudi Arabia, the world’s leading crude exporter, is reportedly prepared to increase its production to meet strong demand, which likely would keep a ceiling on the price of crude. Domestic production also remains elevated and is expected to stay at or near current levels, despite the reduction in U.S. oil rig counts.
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