Slight Relief at Pumps Probably Won't Last as Crude Sets Record

Gas prices have eased off of record highs in the last few days, but don't expect this little bit of relief to last.

(SALEM, Ore.) - The statewide average for regular unleaded in Oregon increases almost a cent this week to $3.67, while the national average is up just three-tenths of a cent to $3.61.

The main reason gas prices didn't increase as fast in the past week is that the price of crude dropped to around $110 per barrel last week. This week, however, crude prices are back in record territory, with a barrel costing about $122 today.

"The slight drop we've seen in gas prices isn't expected to last as crude oil surges to a new record high," said AAA Oregon Public Affairs Director Marie Dodds. That means we'll probably see prices spike again at the pumps in the coming days."

The price of crude skyrocketed as a result of supply threats overseas and a weaker U.S. dollar. In Nigeria, rebels attacked oil wells and pipelines, and in Iraq, Turkish forces have again been involved in cross-border raids against insurgents. AAA is still predicting a national average near $3.75 around Memorial Day, which means many places, especially here on the west coast, will see prices at or above $4 per gallon.

Prices at the pumps continue to be much higher than they were a year ago. The national average was $3.04 last year, while Oregon's average was $3.38.

Portland’s prices are the cheapest in the state at $3.647 for a gallon of regular. Salem drivers are paying slightly more at $3.626. A gallon of regular in Eugene/Springfield is going for $3.704, and motorists in the Medford/Ashland area are paying $3.744 a gallon. Self serve regular in Vancouver, Washington is selling for $3.721.

Oregon's gas prices are eleventh highest in the nation, down from tenth highest last week. California again has the most expensive gas in the country at $3.92 a gallon, followed by Alaska at $3.91, Hawaii at $3.85, Connecticut at $3.82 and New York at $3.80. Washington is the seventh-highest again this week at $3.73. Wyoming has the least expensive gas in the country again this week at $3.44 per gallon.

The Oregon and national averages for diesel have also backed away slightly from record highs. The national average is holding steady at $4.24, down slightly from the record of $4.251 set on May 1. Oregon's average drops a cent to $4.35, down from the record high of $4.365 set on May 1. New York has the highest statewide average price for diesel again this week at $4.59, followed by Connecticut at $4.51, Hawaii at $4.50, California at $4.48, and Washington at $4.46. Oregon's diesel prices are the 12th most expensive again this week. A year ago the national average for diesel was $2.91 and Oregon's average was $2.96.

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Fed up! May 9, 2008 9:12 am (Pacific time)

Increase taxes on profits to make gasoline cheaper?! Note: The profit margin for U.S. oil companies is lower than most businesses. They sell a lot but they also pay the most in taxes, and every time the world market price goes up they get the blame. They have no control over that price, but if allowed to drill where they know supplies exist, the world price will go down even before the oil rigs get on sight. OPEC is scared to death that we start developing energy independence that in the past they have always lowered the price to head off our developing independence. The reason energy prices are so high is partly because of the increased worldwide demand but mostly because of the policies of the Democrats. Now the Democrats are prepared to make things even worse. Taxing away the profits of oil companies will discourage them from doing any future drilling. Traders in energy futures are often businesses and utilities who want to lock in a future energy price to reduce risk. Traders create liquidity in the energy markets. If the speculators are wrongly valueing future energy prices they will lose money. No speculator can control the price of a international commodity like crude oil. Democrats create a problem, then try to score political points by blaming other people and then make it worse. Does someone want to put the government in charged of running and developing the energy market?

Hybrid Driver May 8, 2008 1:46 pm (Pacific time)

These high energy prices have nothing to do with the executive branch. It is the congress and the environmental groups that have hamstrung our supply. There is more oil out there than we could ever use, we need to vote the democrats out of office before it's too late. So many of you have been conditioned to hate any type of big business, but then you love big government which does not create wealth, they spend it. Wake up! If it was blood for oil, where is it? When is the last time a refinery was built? What was our population then and our energy consumption? What is it now? We are in some big trouble!

Ouch it hurts May 6, 2008 12:27 pm (Pacific time)

Who could possibly feel any RELIEF? I can't tell the difference between 3.55 and 3.65! All I know is I'm driving less and so is every one I know. Too bad for summer tourism. I hope the Bush regime is happy as clams. They're the only ones that still have any!

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