Gas prices are climbing in Oregon and across the country. Crude oil prices jumped in response to the strikes between Israel and Iran, and the U.S. attack on Iran’s nuclear facilities. But oil prices have dropped to start this week as markets digest a ceasefire between Israel and Iran and weigh the impacts on global oil supplies. Crude prices and markets will remain volatile, as events unfold in the Middle East. For the week, the national average for regular gains six cents $3.22 a gallon. The Oregon average rises seven cents to $4.08 a gallon.
“If there are no disruptions in global crude oil supplies, crude prices may settle down, which in turn would help ease climbing gas prices. But with the volatility in crude prices, plus the seasonal increases in demand for gas, we’ll likely see gas prices climb in the short term. Also, Iran has said it could block the Strait of Hormuz, which is a critical passage for ships carrying about 20% of global oil supplies. If that were to happen, we’d see crude prices rise,” says Marie Dodds, public affairs director for AAA Oregon/Idaho.
Pump prices are rising ahead of the Independence Day holiday. AAA expects record-breaking travel for the 4th of July holiday, with 72.2 million Americans including 875,000 going 50 miles or more from home over the holiday travel period. This is an increase of 1.7 million travelers (2.4%) compared to last year and 7 million more (10.7%) from 2019. Car and air travel volumes will break records. Find all the info plus graphics, top destinations, and advice for travelers in the AAA Independence Day travel news release.
The Oregon average for regular gas began 2025 at $3.45 a gallon and is currently at $4.08. This is the highest price of the year so far. The lowest price of the year so far is just under $3.45 a gallon on January 2.
The national average began 2025 at $3.06 a gallon and is currently at $3.22. The highest price of the year so far is $3.27 on April 4. The lowest price of the year so far is $3.06 on January 5.
This week 24 Oregon counties have averages at or above $4:
- Benton $4.00
- Clackamas $4.12
- Clatsop $4.17
- Columbia $4.28
- Coos $4.06
- Crook $4.10
- Curry $4.16
- Douglas $4.11
- Grant $4.19
- Harney $4.27
- Hood River $4.09
- Jackson $4.18
- Josephine $4.17
- Klamath $4.11
- Lake $4.32
- Lane $4.04
- Linn $4.02
- Multnomah $4.18
- Sherman $4.08
- Tillamook $4.21
- Wallowa $4.07
- Wasco $4.09
- Washington $4.16
- Yamhill $4.14
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, which is more expensive to produce and less likely to evaporate in warmer temperatures. 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 is steady at 13.43 million barrels per day for the week ending June 13. 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) had been mostly in the upper $60s to mid-$70s since last September. Crude prices spiked to the mid-$70s in mid-June in response to the strikes between Israel and Iran, and then Friday’s U.S. strike on Iran’s nuclear facilities. Crude prices have dropped back into the upper $60s to start this week on hopes that the conflict will not have a major impact on global oil supplies. Crude prices fell in early April as markets reacted to President Trumps tariffs and the impact on U.S. and global markets. Additional downward pressure on crude prices came after the decision by OPEC+ to increase production. The lowest closing price since September was $57.13 on May 5, which was the lowest closing price since February 2021. The recent high price for crude was $80.04 per barrel on January 15, which was the highest price since last August.
Crude oil is trading around $64 today compared to $75 a week ago and $82 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 current economic uncertainty, unrest in the Middle East including the recent strikes between Israel and Iran and the U.S. strikes on Iranian nuclear facilities, the war between Israel and Hamas, 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+ in previous years tightened global crude oil supplies, which continued to impact prices. But now the cartel boosted production by 411,000 barrels in May and June, and announced the same increase for July.
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 49% of what we pay for in a gallon of gasoline is for the price of crude oil, 16% is refining, 19% distribution and marketing, and 16% are taxes, according to the U.S. Energy Information Administration.
Demand for gasoline in the U.S. increased from 9.17 million b/d to 9.30 for the week ending June 13, according to the U.S. Energy Information Administration (EIA). This compares to 9.34 million b/d a year ago. Meanwhile, total domestic gasoline supply increased from 229.8 million barrels to 230.0. Gasoline production increased last week, averaging 10.1 million barrels per day, compared to 9.7 million barrels daily the previous week.
Pump prices will likely rise in the short term, due to higher crude oil prices.
Quick stats
Oregon is one of 47 states with higher prices now than a week ago. New Mexico (+17 cents) has the biggest week-over-week increase in the nation. Indiana (-6 cents) has the largest week-over-week decline.
California ($4.65) has the most expensive gas in the nation for the 19th week in a row. Hawaii ($4.48) is second, Washington ($4.46) is third, and Oregon ($4.08) is fourth. These are the four states in the country with averages at or above $4 a gallon. This week 32 states and the District of Columbia have averages in the $3-range. There are 14 states with an average in the $2 range this week.
The cheapest gas in the nation is in Mississippi ($2.74) and Oklahoma ($2.83). 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 $1.92 this week, compared to $1.98 a week ago.
Oregon is one of 42 states with higher prices now than a month ago. The national average is six cents more and the Oregon average is also six cents more than a month ago. Delaware (+24 cents) has the largest month-over-month increase in the nation. California (-20 cents) has the largest month-over-month drop.
Oregon is the only state where the current average is the same as one year ago. The District of Columbia and 48 states have lower prices now than a year ago. The national average is 22 cents less than a year ago. Indiana (-43 cents) has the largest yearly drop. Washington (+14 cents) is the only state with a 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 jumps 14 cents to $3.71 a gallon. The record high is $5.816 set on June 19, 2022. The Oregon average soars 20 cents to $4.44. The record high is $6.47 set on July 3, 2022. A year ago the national average for diesel was $3.79 and the Oregon average was $4.07.
Source: AAA