Oregon Average Drops Below $4 Per Gallon

The price of crude keeps falling despite Russia's military presence in Georgia. In fact, it's the first time in a decade that military action in an oil sensitive region hasn't resulted in an oil market rally.

(PORTLAND, Ore.) - Oregon's statewide average for regular unleaded is less than $4 per gallon for the first time since the last week of May. The statewide average falls seven cents this week to $3.99, and only one measured metro area in Oregon, Medford/Ashland, has an average above $4.

The national average declines for the 26th day in a row, also dropping seven cents this week to $3.80 a gallon." AAA Oregon Public Affairs Director Marie Dodds says, "Oregon's average is down 28 cents in the past month, while the national average has lost 30 cents. The national average should easily dip below $3.75 a gallon as soon as this week, and could drop another 15 cents per gallon by Labor Day." Relief at the pumps comes as a result of plummeting crude oil prices. Crude is trading at about $113 per barrel today. Prices have dropped about $34 from the record high of $147 per barrel set on July 11. Despite what could have been a nervous situation for the oil markets as Russia invaded Georgia, oil prices continued to fall. It's the first time in a decade that military action in an oil sensitive region has not resulted in an oil market rally. It may mean that oil traders believe that oil and gas futures prices have significantly outrun actual demand. In addition, the U.S. dollar is showing some strength against other currencies, putting downward pressure on crude prices. Despite lower prices at the pumps, we're still paying much more than we were a year ago. The national average was $2.77 last year, while Oregon's average was $2.81.

Portland leads the pack in Oregon with an average for regular of $3.893, Eugene/Springfield drivers are paying an average of $3.956. Vancouver, Washington area residents are paying $3.960 for self-serve regular, and motorists in the capitol city are paying $3.966. Regular in the Medford/Ashland is going for $4.133 a gallon.

Oregon's gas prices are 10th highest in the nation for the third week in a row. Alaska has the most expensive gas in the country for the seventh week in a row at $4.62 a gallon, followed by Hawaii at $4.46, California at $4.11, Utah at $4.10 and Idaho at $4.06. Washington is seventh highest at $4.05. Missouri has the least expensive gas in the country this week at $3.55 per gallon. Washington and Idaho are among 9 states, with averages for regular unleaded at or above $4 per gallon, down from 12 states last week.

Diesel prices are at their lowest level since mid May. The national average drops 12 cents to $4.52 this week, while Oregon's average also loses 12 cents to $4.61. Diesel averages are above $5 per gallon in two states for the second week in a row. Hawaii has the highest statewide average price for diesel again this week at $5.34, followed by Alaska at $5.20, New York at $4.88, Connecticut at $4.79 and Vermont at $4.77. Oregon's diesel prices are 15th highest, down from 14th last week. Washington's 9th, down from 8th last week.. A year ago the national average for diesel was $2.93 and Oregon's average was $3.05.

Get the latest fuel prices at AAA's Daily Fuel Gauge at www.fuelgaugereport.com/. For a comparison of fuel prices across the nation, go to the AAA Fuel Price Finder at www.AAA.com. AAA Oregon/Idaho provides more than 700,000 members with travel, insurance, financial and automotive-related services, and is an affiliate of AAA National, serving more than 50 million motorists in North America.