Gas prices are barely budging this week, even as crude oil prices jump to their highest prices since August. New U.S. sanctions on Russian oil producers and the blacklisting of 183 tankers believed to be part of a Russian shadow fleet delivering crude oil to China and India are driving concerns about possible global supply issues, creating volatility in crude oil prices. For the week, the national average for regular holds steady at $3.07 a gallon. The Oregon average ticks up one cent to $3.47 a gallon.
“In addition to the geo-political events, cold weather in the U.S. is also putting some upward pressure on crude oil and diesel prices. For now, the typical low demand for gasoline we see this time of year is helping to keep gas prices from climbing. But that will change in the coming weeks when refinery maintenance season begins,” says Marie Dodds, public affairs director for AAA Oregon/Idaho.
The California wildfires may impact regional crude oil, gasoline, diesel and natural gas supplies, in addition to the loss of life and all of the devastation. So far, the five refineries that operate in the Los Angeles and Long Beach areas are not directly threatened by the fires. But several pipelines, which provide supplies to California and other states, are impacted by the fires.
The Oregon average began 2025 at $3.45 a gallon and is currently at $3.47. The average price of regular gas in Oregon in 2024 was $3.88, compared to $4.23 in 2023. The Oregon average began 2024 at $3.79 a gallon and ended the year at $3.45. The lowest price in 2024 was just under $3.45 a gallon on December 30 and the highest price of the year was nearly $4.51 on May 1.
The national average began 2025 at $3.06 a gallon and is currently at $3.07. The average price of gas nationwide in 2024 was $3.33, compared to $3.53 in 2023. The national average started 2024 at $3.11 and ended the year at $3.04. The lowest price in 2024 was $3.01 on December 10, and the highest was just under $3.68 on April 19.
Gas prices typically rise starting in mid-to-late winter and early spring as refineries undergo maintenance ahead of the switch to summer-blend fuel. The switch occurs first in California, which is why pump prices on the West Coast often rise before other parts of the country. The East Coast is the last major market to switch to summer-blend fuel. Most areas have a May 1 compliance date for refiners and terminals, while most gas stations have a June 1 deadline to switch to selling summer-blend until June 1. Switch-over dates are earlier in California with some areas in the state requiring summer-blend fuel by April 1. Some refineries will begin maintenance and the switchover in February.
Gas prices usually drop in the fall, due to the switch from summer-blend to winter-blend fuel, which costs less to produce. The switch starts in September. Many areas, including Oregon, can sell winter-blend fuel starting September 15. However, Northern and Southern California require summer-blend fuel through October 31. Prices usually decline to their lowest levels of the year in late fall and early winter before increasing again in the late winter and early spring.
Meanwhile, crude oil production in the U.S. remains near record highs. The U.S. Energy Information Administration (EIA) reports that crude production in this country slipped from 13.57 to 13.56 million barrels per day for the week ending January 3. The record high is 13.63 million barrels per day for the week of December 6. Production has been at 13.5 million barrels per day many times since October. The U.S. has been the top producer of crude oil in the world since 2018 and has been increasing its oil production since about 2009.
The U.S. price of crude oil (West Texas Intermediate) soared above $78 per barrel this week, which is the highest price since October. Crude had been between about $67 and $74 per barrel from mid-October until January 9. New U.S. sanctions against Russia and wintery weather in much of the U.S. are factors putting upward pressure on crude prices.
Crude oil is trading around $77 today compared to $74 a week ago and $73 a year ago. In 2024, West Texas Intermediate ranged between $66 and $87 per barrel. In 2023, WTI ranged between $63 and $95 per barrel. WTI reached recent highs of $123.70 on March 8, 2022, shortly after the Russian invasion of Ukraine, and $122.11 per barrel on June 8, 2022. The all-time high for WTI crude oil is $147.27 in July 2008.
Crude prices are impacted by economic news as well as geopolitical events around the world including the unrest in the Middle East and the war between Russia and Ukraine. Russia is a top global oil producer, behind the U.S. and Saudi Arabia. Crude prices have been volatile after the attack on Israel by Hamas in October 2023. While Israel and the Palestinian territory are not oil producers, concerns remain that the conflict could spread in the Middle East, which could potentially impact crude production in other oil-producing nations in the region. In addition, production cuts by OPEC+ have tightened global crude oil supplies, which will continue to impact prices.
Crude oil is the main ingredient in gasoline and diesel, so pump prices are impacted by crude prices on the global markets. On average, about 56% of what we pay for in a gallon of gasoline is for the price of crude oil, 9% is refining, 19% distribution and marketing, and 17% are taxes, according to the U.S. Energy Information Administration.
Demand for gasoline in the U.S. rose from 8.17 million b/d to 8.48 million b/d for the week ending January 3, according to the U.S. Energy Information Administration (EIA). This compares to 8.33 million b/d a year ago. Meanwhile, total domestic gasoline soared from 231.4 million barrels to 237.7, while gasoline production edged lower last week, averaging 8.88 million barrels daily compared to 8.96 million barrels a day the previous week.
Pump prices will likely rise ahead of the larger seasonal increases that we typically see in the coming weeks, especially if crude oil prices remain above $75 per barrel.
Quick stats
Oregon is one of 30 states with higher prices now than a week ago. However, all but one state are seeing small increases of a nickel or less. Florida (+9 cents) has the largest week-over-week increase in the nation. Indiana (-11 cents) has the biggest week-over-week decrease.
Hawaii ($4.55) has the most expensive gas in the nation for the 11th week in a row. California ($4.38) is second. These are the only two states in the country with averages still at or above $4 a gallon. This week 20 states and the District of Columbia have averages in the $3-range. There are 28 states with an average in the $2 range this week.
The cheapest gas in the nation is in Oklahoma ($2.59) and Mississippi ($2.63). No state has had an average below $2 a gallon since January 7, 2021, when Mississippi and Texas were below that threshold. At the time, the COVID-19 pandemic drove significant declines in crude oil and gasoline demand in the U.S. and around the world.
The difference between the most expensive and least expensive states is $1.96 this week, compared to $1.98 a week ago.
Oregon is one of 17 states and the District of Columbia with lower prices now than a month ago. The national average is five cents more and the Oregon average is 3/10ths of a cent less than a month ago. Delaware (+22 cents) has the largest month-over-month increase. Arizona (-8 cents) has the largest month-over-month drop in the nation.
Oregon is one of 26 states with lower prices now than a year ago. The national average is 2/10ths of a cent more and the Oregon average is 20 cents less than a year ago. This is the third-largest year-over-year drop in the nation. Alaska (-26 cents) has the largest yearly drop. Utah (+27 cents) has the largest year-over-year increase.
West Coast
The West Coast region continues to have the most expensive pump prices in the nation with six of the seven states in the top 10. It’s typical for the West Coast to have six or seven states in the top 10 as this region tends to consistently have fairly tight supplies, consuming about as much gasoline as is produced. In addition, this region is located relatively far from parts of the country where oil drilling, production and refining occurs, so transportation costs are higher. And environmental programs in this region add to the cost of production, storage and distribution.
Diesel
For the week, the national average gains five cents to $3.58 a gallon. The record high is $5.816 set on June 19, 2022. The Oregon average adds one cent to $3.78. The record high is $6.47 set on July 3, 2022. A year ago the national average for diesel was $3.93 and the Oregon average was $4.25.
Source: AAA