Gas Prices Tick Up for First Time in 86 Days

Oregon AAA says they are still at lowest level in nearly five years.

Salem-News.com

(PORTLAND, Ore.) - Oregon AAA says we've seen the national average tick up twice in the past week, after 86 consecutive days of declines.

"This development signals a potential period of firming prices during the upcoming holiday travel period," AAA Oregon Public Affairs Director Marie Dodds says.

"The national average falls nearly four cents in the past week to $1.66, while Oregon's average drops nearly eight cents to $1.73. Both averages are at their lowest point since February 2004 and more than $1.30 a gallon lower than a year ago."

Dodds says the reason gas prices have firmed is because of a weakening U.S. dollar last week and because crude oil prices briefly surged late last week to nearly $50 per barrel after dropping to nearly $40 per barrel on Friday, December 5th.

Crude dropped back to about $45 yesterday, and is trading around $45 again today. OPEC meets tomorrow in Algeria and is expected to announce production cuts between one and two million barrels a day.

The oil cartel has not been able to stop falling crude prices as the faltering global economy has curbed demand. Crude prices have fallen about 70% since peaking at $147 per barrel in July.

"Where oil and gasoline prices go later this week will be heavily influenced by what OPEC actually decides to do, and by whether the U.S. Federal Reserve decides to move ahead with another rate cut this week," adds Dodds.

"If OPEC does not make major production cuts and/or the Fed does not cut rates, oil and gas prices could continue to fall as the holidays approach."

Portland's average price of $1.699 is the best in the state. Salem follows with regular going for around $1.705. Drivers in Eugene/Springfield are paying an average of $1.740 for a gallon of regular, and average prices in the Medford/Ashland area are $1.813. Drivers in Vancouver, Washington are paying an average of $1.808 for a gallon of regular.

Only two states still have averages for regular unleaded at or above $2 a gallon, down from three states last week. The most expensive gas in the country for the 25th week in a row is Alaska at $2.67, followed by Hawaii at $2.42, New York at $1.95, District of Columbia at $1.82 and Connecticut at $1.81.

Oregon's gas prices are 14th highest, down from 12th last week. Washington is 10th, up from 11th last week, with its statewide average falling seven cents to $1.76. Wyoming replaces Missouri as the state with the least expensive gas with regular unleaded at $1.49 a gallon.

Diesel prices are down for the week, but the national average did tick up a tenth of a cent overnight. It falls nine cents this week to $2.54. Oregon's average drops nearly 13 cents this week to $2.51. Hawaii has the highest statewide average price for diesel again this week at $4.04, followed by Alaska at $3.67, New York at $3.03, District of Columbia at $2.94, and Connecticut at $2.92. Oregon's average diesel price is 30th most expensive this week, down from 24th last week. Washington's diesel price is $2.55 which is 24th highest, down from 23rd last week. A year ago, the national average for diesel was $3.41 and Oregon's average was $3.42.