Gas Prices Continue Record Setting Pace as Memorial Day Approaches

Each day seems to bring new record highs at the pumps. Will we see a national average of $4 per gallon for regular unleaded by Memorial Day?

(PORTLAND, Ore.) - Memorial Day weekend, the traditional start of the summer driving season, is less than two weeks away, and gas prices continue to set new record highs almost every day.

AAA Oregon Public Affairs Director Marie Dodds says, "The statewide average for regular unleaded in Oregon jumps eight cents this week to $3.75, while the national average soars 12 cents to $3.73. The national average is just two cents shy of the peak price of $3.75 predicted by AAA earlier this year when crude oil surpassed $100 per barrel." The major factor behind skyrocketing gas prices is the record high price of crude. A barrel of crude oil costs about $126 today, up from about $113 on May 1, and more than double the price it was a year ago. Many markets, especially on the west coast, are already seeing prices at the pumps at or above $4 per gallon. San Francisco's current average is $4.03. In order for the national average to climb to $4, the price of crude would have to reach $130 to $135 per barrel, which is a real possibility considering the strong advance of crude oil prices in the past few weeks.

Pump prices over the Memorial Day weekend will also be affected by demand. Lackluster demand could keep prices in check, while a more traditional increase in consumption could send prices higher. Reports do indicate that demand for gasoline is down. The International Energy Agency again cut its forecast for global oil demand today by 400,000 barrels per day, based on weaker than expected demand in the U.S. and Europe.

Prices at the pumps continue to be much higher than they were a year ago. The national average was $3.07 last year, while Oregon's average was $3.41.

Salem’s average cost of $3.711 per gallon is the lowest in the state though it is hard to refer to it as low. Portland’s $3.725 is the next best cost for a gallon of regular. Drivers in the Eugene/Springfield area are paying $3.767 a gallon and Medford/Ashland motorists are seeing an average of $3.800 at the pump. Self serve regular in Vancouver, Washington is selling for $3.78o.

Oregon's gas prices are 15th highest in the nation, down from eleventh highest last week. Alaska has the most expensive gas in the country at $3.98 a gallon, followed by Connecticut at $3.96, California at $3.94, New York at $3.91 and Illinois at $3.90. Washington is the 11th highest this week, down from seventh-highest last week at $3.81. Arizona has the least expensive gas in the country this week at $3.52 per gallon.

The Oregon and national averages for diesel are also at record highs. The national average rockets up 15 cents to $4.39. Oregon's average jumps ten cents to $4.45. New York has the highest statewide average price for diesel again this week at $4.70, followed by California at $4.67, Connecticut at $4.64, Pennsylvania at $4.58 and Hawaii at $4.58. Oregon's diesel prices are the 16th most expensive this week, down from 12th highest last week. A year ago the national average for diesel was $2.90 and Oregon's average was $2.94.