Gas prices have increased over the past few days with industry analysts pointing to the recent attacks on Saudi Arabian oil facilities.
This is the first time since early June that the national gas price average jumped more than a nickel in just a few days. For the week, the national average for regular shoots up seven cents to $2.66 a gallon.
The Oregon average adds two cents to $3.07. The average prices of a gallon of gas in Hermiston is around $2.99.
The attacks drove crude oil prices dramatically higher early last week, with West Texas Intermediate rocketing up $10 per barrel to nearly $64 per barrel. Gasoline stations reacted just as swiftly. In some markets, retail prices shot up by as much as 25 cents a gallon, pushing the national average up six cents overnight last Tuesday. However, by the end of the week, crude oil dropped down to $58/bbl and gas prices started to stabilize as reports indicated that Saudi facilities should be fully operational by the end of September.
“Pump price increases were less dramatic here on the West Coast than in other parts of the country, and the downward movement in crude oil prices should help stabilize retail gas prices. Still, expect some fluctuation in prices through the next couple weeks,” says Marie Dodds, public affairs director for AAA Oregon/Idaho. “If Saudi Arabian crude production does return to full capacity soon, any price spikes are likely to be temporary.”
Falling demand in the U.S. should also help to send pump prices lower. In its latest report, the Energy Information Administration (EIA) measured U.S. demand at 8.9 million b/d, which is a substantial 900,000 b/d drop from the previous week and a low reading not seen since February. The decrease in demand amid the spike in crude oil prices could help to keep gas price fluctuations more moderate through the end of the month.
Oregon is one of 49 states and the District of Columbia where prices are higher now than a week ago. The biggest jump is in Kentucky (+14 cents). Rhode Island (-1/2 cent) is the only state with a week-over-week drop. This week there are five states with an average above $3 a gallon, same as a week ago.
Oregon is one of 33 states with higher prices now than a month ago. The national average is six cents more and the Oregon average is one cent more than a month ago. This is the 33rd-largest monthly increase in the nation. Colorado (+18 cents) has the largest month-over-month increase. Connecticut (-8 cents) has the largest month-over-month decline.
Oregon is one of 48 states and the District of Columbia where drivers are paying less than a year ago. The national average is 20 cents less and the Oregon average is 19 cents less than a year ago.
