Oregon tops U.S. as gas prices rocket 50 cents higher in just a week; Calif. refineries undergo maintenance
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(Update: AAA Oregon/Idaho's weekly report)
Hurricane Ian, pipeline maintenance also could cause issues
PORTLAND, Ore. (KTVZ) – After 14 weeks of declines, gas prices are on the rise, soaring on the West Coast and in the Midwest, with more moderate increases in other parts of the country, AAA Oregon/Idaho reported Tuesday.
Several refineries in California are undergoing planned or unplanned maintenance, creating extremely tight supplies on the West Coast, AAA said. For the week, the national average for regular adds seven cents to $3.75 a gallon. The Oregon average rockets up 50 cents to $5.14. This is the largest weekly jump in the nation.
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“Multiple refineries in the Los Angeles area and a refinery in Washington state are experiencing either planned or unplanned refinery work, which could last several more days. This has put a significant crimp in supplies and sent pump prices soaring in this region. In addition, the Olympic pipeline in Washington is due for maintenance, perhaps as early as this week,” says Marie Dodds, public affairs director for AAA Oregon/Idaho.
Hurricane Ian also has the potential to cause problems, depending on the storm’s track, by disrupting oil production, refining and transportation in the Gulf of Mexico.
Until this week, the national and Oregon averages had been declining for 14 consecutive weeks, backing away from record highs set in mid-June. The national average reached its record high of $5.016 on June 14 while the Oregon average reached its record high of $5.548 on June 15.
“Lackluster demand for gas and lower crude oil prices should take some pressure off of rising pump prices. But drivers can expect a very volatile couple of weeks due to the refinery issues as well as Hurricane Ian slamming the Gulf Coast,” adds Dodds.
Crude oil prices have tumbled from recent highs due to fears of economic slowdowns elsewhere around the globe. Crude reached a recent high of $122.11 per barrel on June 8, and ranged from about $94 to $110 per barrel in July. In August, crude prices ranged between about $86 and $97. In September, crude prices have been between about $76 and $89 per barrel. Last week, West Texas Intermediate fell below $80 per barrel for the first time since January.
Crude prices rose dramatically leading up to and in the first few months of Russia’s invasion of Ukraine. Russia is one of the world’s top oil producers and its involvement in a war causes market volatility, and sanctions imposed on Russia by the U.S. and other western nations resulted in tighter global oil supplies. Oil supplies were already tight around the world as demand for oil increased as pandemic restrictions eased. A year ago, crude was around $75 per barrel compared to $77 today.
Crude oil is the main ingredient in gasoline and diesel, so pump prices are impacted by crude prices on the global markets. On average, about 53% of what we pay for in a gallon of gasoline is for the price of crude oil, 12% is refining, 21% distribution and marketing, and 15% are taxes, according to the U.S. Energy Information Administration.
Demand for gasoline in the U.S. decreased from 8.49 million b/d to 8.32 million b/d last week. This is lower than last year at this time when demand was at 8.9 million b/d. Total domestic gasoline stocks increased by 1.6 million bbl to 214.6 million bbl. Although gasoline demand has decreased, tight supply and fluctuating oil prices have increased the national average price. However, if gas demand remains low, pump price increases should be temporary.
Quick stats
Oregon is one of 28 states with higher prices now than a week ago, and 11 states, including Oregon, have double-digit increases. Oregon (+50 cents) has the largest weekly jump in the nation. Delaware (+4/10ths of a cent) has the smallest weekly increase. Rhode Island (-12 cents) has the largest weekly decline.
California ($5.88) has the most expensive gas in the country for the third week in a row. This week Oregon, Nevada ($5.12) and Washington ($5.02) join California and Hawaii ($5.27) as the only states with an average at or above $5 a gallon. This week 11 states have averages at or above $4, and 39 states and the District of Columbia have averages in the $3-range.
The cheapest gas in the nation is in Mississippi ($3.07) and Texas ($3.11). For the 90th week in a row, no state has an average below $2 a gallon.
Oregon is one of 11 states with higher prices now than a month ago. The national average is 11 cents less and the Oregon average is 36 cents more than a month ago. Oregon has the second-largest monthly increase in the nation. California (+60 cents) has the largest month-over-month jump. Connecticut (-58 cents) has the largest monthly drop.
All 50 states and the District of Columbia have higher prices now than a year ago. The national average is 56 cents more and the Oregon average is $1.41 more than a year ago. This is the second-largest yearly increase in the nation. California (+$1.49) has the biggest yearly increase. Connecticut (+13 cents) has the smallest year-over-year increase.
West Coast
The West Coast region continues to have the most expensive pump prices in the nation with all seven states in the top 10. This is typical for the West Coast as this region tends to consistently have fairly tight supplies, consuming about as much gasoline as is produced. In addition, this region is located relatively far from parts of the country where oil drilling, production and refining occurs, so transportation costs are higher. And environmental programs in this region add to the cost of production, storage and distribution.
The current refinery issues on the West Coast are causing pump prices here to spike this week due to limited supplies.
Rank | Region | Price on 9/27/22 | ||
1 | California | $5.88 | ||
2 | Hawaii | $5.24 | ||
3 | Oregon | $5.14 | ||
4 | Nevada | $5.12 | ||
5 | Washington | $5.02 | ||
6 | Alaska | $4.88 | ||
7 | Idaho | $4.42 | ||
8 | Utah | $4.19 | ||
9 | Arizona | $4.18 | ||
10 | Michigan | $4.12 |
As mentioned above, California is the most expensive state for the third consecutive week. Hawaii, Oregon, Nevada, Washington, and Alaska round out the top six. Arizona is ninth. Oregon rises to third after a week at fourth.
Six of the seven states in the West Coast region are seeing large jumps this week. Oregon (+50 cents) has the largest increase in the region and the country. California (+43 cents), Washington (+40 cents), Alaska (+25 cents), and Nevada (+20 cents) also have large weekly increases. Hawaii (-3 cents) is the only state in the region with a week-over-week decline.
The refinery utilization rate on the West Coast fell from 83.8% to 81.4% for the week ending September 16. This decline is largely due to planned and unplanned refinery maintenance. The rate has ranged between about 76% and 90% in the last year.
According to EIA’s latest weekly report, total gas stocks in the region increased from 25.66 million bbl. to 25.78 million bbl.
Oil market dynamics
Crude prices fell below $80 per barrel last week, a price point not seen since early January 2022, as the market continues to worry about a global recession and high inflation. If a recession occurs, crude demand and prices would likely decline. For this week, crude prices could continue to decrease if recession fears persist. Additionally, EIA’s latest weekly report showed that total commercial crude inventories increased by 1.2 million bbl to 430.8 million bbl.
At the close of Friday’s formal trading session, WTI decreased by $4.75 to settle at $78.74. At the close of Monday’s formal trading session, WTI fell $2.03 to close at $76.71. Today crude is trading around $78, compared to $85 a week ago. Crude prices are about $3 more 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.
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Diesel
For the week, the national average loses a nickel to $4.89 a gallon. The record high is $5.816 set on June 19. Oregon’s average slips two cents to $5.46. The record high is $6.47 set on July 3. A year ago the national average for diesel was $3.32 and the Oregon average was $3.68.
Average gasoline prices in Oregon have jumped 24.1 cents per gallon in the last week, averaging $4.87/g Monday, according to GasBuddy's survey of 1,307 stations in Oregon.
Prices in Oregon are 7.9 cents per gallon higher than a month ago and stand $1.15/g higher than a year ago. The national average price of diesel has declined 5.1 cents in the last week and stands at $4.88 per gallon.
According to GasBuddy price reports, the cheapest station in Oregon was priced at $3.99/g Sunday while the most expensive was $5.65/g, a difference of $1.66/g. The lowest price in the state yesterday was $3.99/g while the highest was $5.65/g, a difference of $1.66/g.
The national average price of gasoline has risen 3.2 cents per gallon in the last week, averaging $3.67/g today. The national average is down 17.5 cents per gallon from a month ago and stands 49.3 cents per gallon higher than a year ago, according to GasBuddy data compiled from more than 11 million weekly price reports covering over 150,000 gas stations across the country.
Historical gasoline prices in Oregon and the national average going back ten years:
September 26, 2021: $3.72/g (U.S. Average: $3.17/g)
September 26, 2020: $2.58/g (U.S. Average: $2.19/g)
September 26, 2019: $3.06/g (U.S. Average: $2.65/g)
September 26, 2018: $3.22/g (U.S. Average: $2.87/g)
September 26, 2017: $2.83/g (U.S. Average: $2.56/g)
September 26, 2016: $2.53/g (U.S. Average: $2.20/g)
September 26, 2015: $2.51/g (U.S. Average: $2.28/g)
September 26, 2014: $3.71/g (U.S. Average: $3.34/g)
September 26, 2013: $3.65/g (U.S. Average: $3.42/g)
September 26, 2012: $3.96/g (U.S. Average: $3.80/g)
Metro areas and their current gas prices:
Eugene- $4.72/g, up 26.4 cents per gallon from last week's $4.45/g.
Salem- $4.50/g, up 22.6 cents per gallon from last week's $4.28/g.
Portland- $4.98/g, up 20.3 cents per gallon from last week's $4.78/g.
"One of the longest gas price declines on record has finally come to an end after 14 weeks, with gas prices shooting up in several regions amidst myriad refinery issues from the West Coast to the Great Lakes and in between," said Patrick De Haan, head of petroleum analysis at GasBuddy.
"I don't know that I've ever seen a wider gamut of price behaviors coast to coast in my career. A slew of unexpected refinery disruptions, including fires and routine maintenance, have seemingly all happened in a short span of time, causing wholesale gas prices to spike in areas of the West Coast, Great Lakes and Plains states - and some of those areas could see prices spike another 25-75 cents per gallon or more until issues are worked out.
"In addition, as Tropical Storm Ian nears the U.S. coast, some refiners could see limited disruption. As a precaution, GasBuddy has activated its Fuel Availability Tracker for motorists in Florida, Georgia, Alabama and South Carolina. Hopefully, disruptions will be very limited due to Ian, but there remain many factors driving prices both up and down across the country."
GasBuddy is the authoritative voice for gas prices and the only source for station-level data. GasBuddy's survey updates 288 times every day from the most diverse list of sources covering nearly 150,000 stations nationwide, the most comprehensive and up-to-date in the country.
GasBuddy also fuels KTVZ.COM's Pump Patrol, where you can find the cheapest gas on the High Desert.