Thursday March 28, 2024
SNc Channels:

Search
About Salem-News.com

 

Dec-13-2022 15:56printcomments

Gasoline in Oregon Drops Below $4 a Gallon

National Average Drops Below Year-Ago Price

gas prices
Gas prices in Salem, Oregon.
Photo by Bonnie King, Salem-News.com

(PORTLAND, Ore.) - For the first time since Feb. 23, the Oregon average for regular unleaded has dropped below $4 a gallon. Gas prices continue to fall in all 50 states again this week.

Lower crude oil prices, lackluster demand for gas, and growing gasoline stocks are the major drivers. For the week, the national average for regular loses 14 cents to $3.25 a gallon.

The Oregon average tumbles 18 cents to $3.98. Oregon has the ninth-largest weekly drop and fifth-largest monthly drop for a state in the nation.

As of last Thursday, December 8, the national average dipped below its year-ago price for the first time in 654 days. As of today, 34 states have averages that are cheaper than last year.

The Oregon average is 20 cents more than a year ago. AAA expects that Oregon and all other states except Alaska, Hawaii and Nevada will see gasoline deflation in the coming weeks.

“The seasonal pattern of less driving due to shorter days and winter weather along with lower crude oil prices are causing pump prices to fall.

"AAA expects the national average will drop below $3 a gallon in the coming weeks,” says Marie Dodds, public affairs director for AAA Oregon/Idaho.

This month crude oil fell below $72 per barrel, the lowest price December 2021. This month, West Texas Intermediate, the U.S. benchmark, has ranged between about $71.50 and $81 per barrel.

In November, WTI ranged between $76 and $92 per barrel. In October, crude ranged between $82 and $92 per barrel. In September, crude prices ranged between about $76 and $88 per barrel. Crude reached a recent high of $122.11 per barrel on June 8. The all-time high for WTI crude oil is $147.27 in July 2008.

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 $71 per barrel compared to $76 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 56% of what we pay for in a gallon of gasoline is for the price of crude oil, 20% is refining, 11% distribution and marketing, and 14% are taxes, according to the U.S. Energy Information Administration.

Demand for gasoline in the U.S. is holding steady for the third consecutive week at about at 8.3 million b/d for the week ending December 2. This compares to 8.9 million b/d at this time last year.

Total domestic gasoline stocks rose significantly by 5.3 million bbl to 219.1 million bbl. Increasing supply and lower gasoline demand will push pump prices lower barring any supply glitches.

Quick stats

Pump prices are lower this week in all 50 states and the District of Columbia. Alaska (-27 cents) has the largest weekly drop, followed by Montana (-27 cents), California (-21 cents), Nevada (-20 cents), and Michigan (-19 cents). Oregon (-18 cents) has the ninth-largest weekly drop. Hawaii (-4 cents) has the smallest weekly decline.

Hawaii ($5.14) is the state with the most expensive gas in the nation for the third week in a row and is the only state with an average at or above $5 a gallon. California ($4.51) is second and Nevada ($4.24) is third.

This week four states have averages at or above $4, 31 states and the District of Columbia have averages in the $3-range, and 15 states have averages below $3 a gallon.

The cheapest gas in the nation is in Texas ($2.69) and Oklahoma ($2.70). For the 101st week in a row, no state has an average below $2 a gallon.

The difference between the most expensive and least expensive states is $2.46 which continues to be stark.

All 50 states and the District of Columbia have lower prices now than a month ago. The national average is 53 cents less and the Oregon average is 82 cents less than a month ago.

Oregon has the fifth-largest monthly decrease in the nation. California (-93 cents) and Alaska (-91 cents) have the largest monthly decline. Hawaii (-5 cents) has the smallest.

Oregon is one of 16 states and the District of Columbia with higher prices now than a year ago. The national average is nine cents less and the Oregon average is 20 cents more than a year ago. This is the fifth-largest year-over-year increase in the nation.

Hawaii (+81 cents), Nevada (+36 cents), Washington (+21 cents), and Pennsylvania (+20 cents) have the largest yearly gains. Colorado (-40 cents) has the biggest year-over-year decline.

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.

Refinery issues in California in September and October exacerbated the situation, creating extremely tight supplies and causing pump prices in this region to skyrocket.

Hawaii is the most expensive state in the nation, with California, Nevada, Washington, Oregon, and Alaska rounding out the top six. Arizona is ninth. Oregon is fifth most expensive for the fifth week in a row.

All of the states in the West Coast region are seeing weekly drops. Alaska (-27 cents) has the largest in the region and the country. Hawaii (-4 cents) has the smallest in the region and country.

The refinery utilization rate on the West Coast rose from 89.7% to 91.9% for the week ending December 2. This rate has ranged between about 76% to 93% in the last year.

According to EIA’s latest weekly report, total gas stocks in the region increased from 29.94 million bbl. to 30.74 million bbl.

Oil market dynamics

Crude prices softened last week due to a stronger dollar. Additionally, crude prices were pushed down after the EIA reported that total domestic commercial crude stocks fell by 5.2 million bbl, a lower amount than the market expected.

The domestic commercial crude supply is 19 million bbl lower than the beginning of December 2021. For this week, crude prices could slide if the market continues to worry that global oil demand will stagnate or decline into 2023, especially in China, due to rising coronavirus infection rates.

At the close of Friday’s formal trading session, WTI decreased by 44 cents to settle at $71.02. At the close of Monday’s formal trading session, WTI added $2.15 to close at $73.17.

Today crude is trading around $75, compared to $74 a week ago. Crude prices are about $2 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.

Diesel

For the week, the national average falls 17 cents to $4.89 a gallon. The record high is $5.816 set on June 19. The Oregon average loses 19 cents to $5.09. The record high is $6.47 set on July 3. A year ago the national average for diesel was $3.60 and the Oregon average was $3.81.

Find current fuel prices at GasPrices.AAA.com.

Source: AAA/Oregon

_________________________________________




Comments Leave a comment on this story.
Name:

All comments and messages are approved by people and self promotional links or unacceptable comments are denied.


[Return to Top]
©2024 Salem-News.com. All opinions expressed in this article are those of the author and do not necessarily reflect those of Salem-News.com.


Articles for December 12, 2022 | Articles for December 13, 2022 | Articles for December 14, 2022
Annual Hemp Festival & Event Calendar

googlec507860f6901db00.html
Special Section: Truth telling news about marijuana related issues and events.

Click here for all of William's articles and letters.

Sean Flynn was a photojournalist in Vietnam, taken captive in 1970 in Cambodia and never seen again.