Gas prices ease as summer arrives; Oregon sees among steepest price declines in the nation, AAA reports
PORTLAND, Ore., (KTVZ) – Pump prices continue to tick down in most states as millions of Americans return home from Memorial Day weekend trips. While refinery issues have sent gas prices higher in some states, Oregon and most other states are seeing prices decline, AAA Oregon/Idaho reported Tuesday.
For the week, the national average for regular dips one cent to $3.59. The Oregon average falls six cents to $4.30 a gallon. This is the sixth-largest week-over-week drop for a state in the nation.
“The Memorial Day weekend kicked off a busy summer travel season. For now, gas prices should continue to tick down which is good news for drivers planning a summer road trip. Wild cards include the potential for rising crude oil prices, and any storm or hurricane that impacts the Gulf Coast,” says Marie Dodds, public affairs director for AAA Oregon/Idaho. “Also, extreme weather including heat and severe storms can impact refinery output.”
The national and Oregon averages are at the same prices as they were in early April.
The Oregon average began 2024 at $3.79 a gallon compared to $4.30 today. Its lowest price so far this year is $3.58 on February 14 and the highest is nearly $4.51 on May 1. The national average started the year at $3.11 and is at $3.59 today. Its lowest price so far this year is just under $3.07 on January 15 and the highest is just under $3.68 on April 19.
Gas prices always rise starting in late winter through the spring as refineries undergo maintenance as the switch to summer-blend fuel occurs. The switch occurs first in California, which is why pump prices on the West Coast often rise before other parts of the country. The East Coast is the last major market to make the change to summer-blend fuel. Most areas have a May 1 compliance date for refiners and terminals, while most gas stations have a June 1 deadline to switch to selling summer-blend until June 1. Switch-over dates are earlier in California with some areas in the state requiring summer-blend fuel by April 1. Some refineries will begin maintenance and the switchover as early as February.
Crude oil prices have remained elevated and volatile due to geopolitical events around the world including increased volatility in the Middle East, the war between Russia and Ukraine, and Houthi militant attacks in the Red Sea. In addition, production cuts by OPEC+ have tightened global crude oil supplies. OPEC+ is scheduled to meet June 2 and expectations are that the cartel will extend production cuts into the third quarter. This has sent crude prices slightly higher this week.
The price of crude oil reached the year-to-date high of nearly $87 per barrel on April 5 and has moved lower since then. West Texas Intermediate climbed above $80 on March 14 and above $85 on April 2, then dipped below $85 starting on April 17 and below $80 again on May 1. Major drivers of elevated crude prices are the unrest in the Middle East and the Ukrainian attacks on Russian refineries. Russia is a top global oil producer and the refinery attacks have reduced output.
Crude prices have been volatile after the attack on Israel by Hamas in October. While Israel and the Palestinian territory are not oil producers, concerns remain that the conflict could spread in the Middle East, which could potentially impact crude production in other oil-producing nations in the region.
Crude oil is trading around $79 today compared to $79 a week ago and $73 a year ago. In 2023, West Texas Intermediate ranged between $63 and $95 per barrel. Crude reached recent highs of $123.70 on March 8, 2022, shortly after the Russian invasion of Ukraine, and $122.11 per barrel on June 8, 2022. The all-time high for WTI crude oil is $147.27 in July 2008.
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 56% of what we pay for in a gallon of gasoline is for the price of crude oil, 19% is refining, 10% distribution and marketing, and 15% are taxes, according to the U.S. Energy Information Administration.
Demand for gasoline in the U.S. rose ahead of the Memorial Day holiday weekend from 8.87 million b/d to 9.31 million b/d for the week ending May 17, according to the U.S. Energy Information Administration (EIA). This compares to 9.44 million b/d a year ago. Meanwhile, total domestic gasoline stocks decreased slightly from 227.8 to 226.8 million bbl., while gasoline production increased, averaging 10.0 million daily barrels.
An increase in gasoline demand paired with falling oil prices could cause pump prices to remain relatively flat for now.
Quick stats
Oregon is one of 37 states and the District of Columbia with lower prices now than a week ago. Illinois (+14 cents) has the biggest weekly increase. New Mexico (-11 cents) has the largest week-over-week decline in the nation. Oregon has the seventh-largest weekly decline.
California ($5.12) has the most expensive gas in the nation for the 13th week in a row and remains the only state in the nation with an average at or above $5 per gallon. Hawaii ($4.78) is second, Washington ($4.55) is third, Oregon ($4.30) is fourth, Nevada ($4.30) is fifth, Alaska ($4.28) is sixth, and Illinois ($4.04) is seventh. These are the seven states with averages at or above $4 a gallon, up from six states a week ago. This week 43 states and the District of Columbia have averages in the $3-range. No states have averages in the $2 range this week.
The cheapest gas in the nation is in Mississippi ($3.03) and Arkansas ($3.07) and. No state has had an average below $2 a gallon since January 7, 2021, when Mississippi and Texas were below that threshold.
The difference between the most expensive and least expensive states is $2.08 this week, compared to $2.13 a week ago.
Oregon is one of 42 states and the District of Columbia with lower prices now than a month ago. The national average is seven cents less and the Oregon average is 18 cents less than a month ago. This is the fifth-largest month-over-month decline in the nation. Utah (-36 cents) has the largest monthly drop. Colorado (+16 cents) has the biggest monthly jump.
Oregon is one of 25 states and the District of Columbia with higher prices now than a year ago. The national average is one cent more than a year ago and the Oregon average is five cents more than a year ago. Arizona (-70 cents) has the largest yearly decrease. Alaska (+34 cents) has the largest 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. It’s typical for the West Coast to have six or seven states in the top 10 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.
| Rank | Region | Price on 5/28/2024 |
| 1 | California | $5.12 |
| 2 | Hawaii | $4.78 |
| 3 | Washington | $4.55 |
| 4 | Oregon | $4.30 |
| 5 | Nevada | $4.30 |
| 6 | Alaska | $4.28 |
| 7 | Illinois | $4.04 |
| 8 | Arizona | $3.84 |
| 9 | Pennsylvania | $3.76 |
| 10 | Idaho | $3.75 |
As mentioned above, California has the most expensive gas in the country for the 13th week in a row. Hawaii, Washington, Oregon, Nevada, and Alaska round out the top six. Arizona is eighth. Oregon is fourth most expensive for the second week in a row.
States in the West Coast region are seeing small to moderate week-over-week declines: California (-7 cents), Nevada (-7 cents), Oregon (-6 cents), Arizona (-6 cents), Alaska (-5 cents), Washington (-5 cents), and Hawaii (-2 cents).
The refinery utilization rate on the West Coast decreased from 82.1% to 81.7% for the week ending May 17. This rate has ranged between about 74% to 97% in the last year. The latest national refinery utilization rate increased from 90.4% to 91.7%. The refinery utilization rate measures how much crude oil refineries are processing as a percentage of their maximum capacity. A low or declining rate can put upward pressure on pump prices, while a high or rising rate can put downward pressure on pump prices.
According to EIA’s latest weekly report, total gas stocks in the region rose from 29.43 million bbl. to 29.89 million bbl.
A decrease in the refinery utilization rate and/or a low rate can put upward pressure on pump prices, and an increase in gasoline stocks can put downward pressure on pump prices.
Oil market dynamics
Crude oil prices declined last week as the EIA reported that crude oil inventories increased by 1.8 million barrels from the previous week. At 458.8 million barrels, U.S. crude oil inventories are about 3% below the five-year average for this time of year. Crude prices are up to start this week as investors look ahead to the June 2 meeting of OPEC+. The cartel is expected to announce continued cuts in oil production.
At the close of Friday’s formal trading session, WTI added 85 cents to settle at $77.72. U.S. markets were closed Monday in observance of Memorial Day. Today crude is trading around $79 compared to $79 a week ago. Crude prices are about $6 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.
