Oregon Gas Prices Continue to Fall

Now that the most severe refinery problems have been resolved, gasoline production should increase, strengthening available inventories.

Salem-News.com

(PORTLAND, Ore. ) - Rapid price increases due to refinery problems in the Midwest, drove up the national average price for a gallon of regular six-and-a-half cents to $3.04 in the past week.

But, overnight Monday, prices in that region declined by as much three cents per gallon, suggesting the worst may be over.

BP reports its Indiana refinery is back on line and production should increase at its Texas plant by month's end.

Valero also resumed operations at its plant in Texas over the weekend. In Oregon, gasoline prices continued their downward trend with the statewide average price falling two cents in the past week to $2.979.

In the Medford-Ashland metropolitan area, average prices dipped below the $3 mark for the first time since April 5th.

Many stations are selling well below the statewide average price, so savvy consumers should compare area prices at the AAA Fuel Price Finder found on-line at AAA.com.

Now that the most severe refinery problems have been resolved, gasoline production should increase, strengthening available inventories.

That should drive pump prices down even further, but the price of crude oil probably will rise as a result.

Already, crude is trading at $75 per barrel, and a report issued by Goldman Sachs forecasts that unless OPEC increases production, steadily growing global oil demand could cause crude oil prices to hit $90 per barrel by the end of the summer and $95 by the end of the year.

At $2.979, Oregon's average gasoline price now ranks 17th lowest in the nation.

In Salem, the average price has dropped to $2.93.

Nebraska has the highest statewide average price at $3.31; South Carolina has the lowest at $2.82.

California's statewide average price is up two cents to $3.15, and Washington's is down to $3.04.

Idaho's average price remains at $3.07, and Nevada's fell to $3.05.

The national average diesel price climbed to $2.95 per gallon.

In California, diesel averages $3.24 per gallon; in Washington and Idaho, it's $3.02, and in Nevada it's $3.13. Oregon's average diesel price moved up to $2.90.