Oregon gas prices fall; still well above U.S. average

The 2015 summer driving season ends with the national average at its lowest point for the Labor Day holiday in more than a decade, with drivers paying about a dollar a gallon less than a year ago, AAA said Tuesday.

“For the week, the national average drops seven cents to $2.39 while Oregon’s average also falls seven cents to $2.76,” said AAA Oregon/Idaho Public Affairs Director Marie Dodds.

“AAA expects gas prices will continue to slide as driving demand experiences a seasonal decrease heading into the fall, provided the price of crude remains relatively low and refineries are able to conduct routine maintenance without issues,” she added.

Asked about the nearly 40-cent higher Oregon gas prices, compared to the U.S. average, Dodds said, “The main reasons are that our part of the country is geographically isolated from the parts of the U.S. that produce and/or refine a lot of oil.”

“And our region tends to produce about as much as we consume,” she added, “so supplies here are often fairly tight to begin with, which also puts upward pressure on our prices, and also can send prices skyrocketing in a hurry whenever we encounter an issue, such as a refinery outage, that further tightens supplies.”

Still, drivers have enjoyed lower pump prices throughout this summer, with an average savings of 89 cents per gallon nationwide compared to last year’s summer driving season, which typically runs from Memorial Day to Labor Day.

These lower prices have encouraged drivers to hit the road in record numbers and meant some of highest demand numbers over the first eight months of 2015.

According to the U.S Energy Information Administration, refineries reported higher than normal utilization rates and more maintenance is scheduled for this year compared to previous years. This could slow the rate of anticipated declines in gas prices, but is not expected to send prices higher.

The end of the summer driving season also signals the start of the seasonal switchover on September 16 to winter-blend gasoline in many parts of the country.

The Environmental Protection Agency requires certain areas to use a specified blend of gasoline, commonly referred to as summer-blend gasoline, in order to address air quality issues during the summer months. This more expensive summer-blend gasoline is not required during the winter months and retail prices tend to fall following the completion of this seasonal switchover.

The highest retail averages in the nation continue to be found west of the Rockies with drivers in Alaska paying the most. Regional neighbors California, Nevada, Hawaii and Washington round out the top five most expensive markets for gasoline. Oregon is eighth most expensive, down from seventh last week. The cheapest gas in the nation is $1.97 in South Carolina, where the average slipped below $2 per gallon over the weekend.

With the exception of Delaware (+4 cents) and Utah (fractions of a penny), retail averages are down in every state and Washington, D.C. week-over-week. Drivers in 26 states are saving a nickel or more per gallon. The largest savings are seen in the Midwest states previously impacted by the Whiting, Indiana refinery outage.

Month-over-month, retail averages are down by a dime or more per gallon in 43 states and Washington, D.C., and Oregon is one of eight states where drivers are saving a quarter or more per gallon. The largest monthly discounts are in California (-33 cents), Oregon (-29 cents) and New Jersey (-27 cents).

Prices remain significantly lower year-over-year in every state. The national average is $1.05 and the Oregon average is $1.10 per gallon lower than a year ago. Pump prices are discounted by $1 or more per gallon in 33 states. Market leaders Alaska (-67 cents), California (-56 cents) and Nevada (-59 cents) are the only states to buck this trend.

While oil prices have been volatile in recent weeks, a long-term bearish sentiment continues to underscore the global oil market as speculation about the balance between supply and demand from emerging economies remain front of mind. A small group of oil ministers from both OPEC member countries and non-OPEC member counties located in the Persian Gulf are scheduled to meet this week, and although oil prices are not officially on the agenda, the market will closely monitor developments for any clues about OPEC’s plans for production.

The domestic oil market has been described as bullish in recent trading sessions, after posting gains upwards of 20 percent following a multi-year low of $38.60 per barrel on August 26. Despite this recent jump, the price of WTI is likely to face downward pressure due to seasonal declines in demand and reduced crude oil purchases by refineries.

At the close of Friday’s formal trading on the NYMEX, West Texas Intermediate settled down 70 cents at $46.05 per barrel. Today WTI is trading around $46 a barrel, same as a week ago. Crude prices are up about three percent in the last month and are about $48 lower than a year ago.

Drivers can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.

Regular Unleaded

Current

Week Ago

Month Ago

Year Ago

Highest Rec. Avg. Price

Date

National Average

$2.391

$2.457

$2.605

$3.438

$4.114

7/17/2008

Oregon Average

$2.759

$2.833

$3.055

$3.861

$4.294

7/3/2008

Portland

$2.773

$2.841

$3.057

$3.853

$4.278

6/21/2008

Salem

$2.763

$2.848

$3.026

$3.830

$4.262

7/8/2008

Eugene/Springfield

$2.693

$2.761

$3.039

$3.844

$4.330

6/28/2008

Medford/Ashland

$2.658

$2.730

$3.089

$3.831

$4.379

7/11/2008

Bend

$2.830

$2.908

$3.087

$3.922

$4.345

6/20/2008

Vancouver, WA

$2.832

$2.882

$3.114

$3.801

$4.349

6/28/2008

For the 43 rd week in a row, there are no states with an average price for regular unleaded at or above $4 a gallon. Forty-six states and Washington D.C. have averages below $3 per gallon, same as last week. South Carolina is the only state with an average below $2 a gallon.

For the second week in a row, Alaska has the most expensive gasoline in the country at $3.35 a gallon, followed by California at $3.26 (down seven cents), Nevada at $3.10, Hawaii at $3.03, and Washington at $2.88 (down six cents and fifth for the third week in a row). Idaho is sixth for the second consecutive week at $2.85 (down seven cents). Oregon is eighth down from seventh last week at $2.76 (down seven cents). South Carolina has the cheapest gas in the nation for the 26 th week in a row at $1.97 a gallon (down a nickel from last week).

Diesel prices are also falling. The national average slips a penny to $2.55 a gallon. Oregon’s average dips four cents to $2.75. Diesel is at or above $4 a gallon in just one state, same as last week. Hawaii is most expensive at $4.46, followed by Alaska at $3.29, New York at $2.93, Connecticut at $2.92, and California at $2.89 (same price as last week and fifth for the second week in a row). Washington is sixth at $2.86 (down three cents and sixth for the second consecutive week). Oregon is 10 th down from ninth last week. Idaho is 11 th for the fourth consecutive week at $2.71 (down four cents). A year ago, the national average for diesel was $3.80 and Oregon’s was $4.02.

Find the lowest citizen-reported gas prices in your area at KTVZ.COM’s Pump Patrol.