Strong Demand, Higher Crude Oil Prices Could Send Gas Prices Higher

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Pump prices continue to move lower this week; however, robust demand in the U.S. and a jump in crude oil prices due to tensions in the Middle East could send gas prices higher in the short-term. For the week, the national average slips half a cent to $2.67 a gallon. The Oregon average loses a nickel to $3.23 a gallon.

U.S. gasoline demand hit its highest level at 9.93 million b/d, for the week ending June 14. It is the highest level ever recorded since the U.S. Energy Information Administration (EIA) began publishing data in 1991.

At the end of last week, a massive fire took Philadelphia Energy Solution’s (PES) Philadelphia, the largest on the East Coast, offline, causing concern of what this could do to gas prices in this region. Gasoline from Canada, neighboring refineries, and the Colonial Pipeline are likely solutions to help meet demand but pump prices in the area will likely climb in the coming days.

Oregon is one of 32 states and the District of Columbia where prices are lower now than a week ago.

In Hermiston, the price has remained steady at around $3.19 per gallon.

Alaska (-8 cents) and Indiana (-8 cents) have the largest weekly decreases. Ohio (+17 cents) and Illinois (+7 cents) have the largest weekly increases. This week there are eight states with an average above $3 a gallon, same as a week ago.

All 50 states and D.C. have lower prices now than a month ago. The national average is 16 cents less and the Oregon average is 19 cents less than a month ago. Indiana (-27 cents) has the largest month-over-month decline.

The West Coast continues to have the highest pump prices in the nation with all of the region’s states landing on the top 10 most expensive list.