Gas prices continue to move lower as millions of Americans get ready to travel for Labor Day. Relatively stable oil costs, mild demand for gas, and an increase in production are all putting downward pressure on pump prices. The national average is at its lowest price since March and the Oregon average is at its lowest price since February. However, tensions in the Middle East and hurricane season could always send oil prices and pump prices higher. For the week, the national average for regular falls five cents to $3.35 a gallon. The Oregon average also loses five cents to $3.80 a gallon. Year-over year, Oregon has the largest drop in the nation, down 94 cents compared to this date in 2023.
This year’s record-breaking summer travel season will wrap up with millions of Americans taking a final summer trip over the Labor Day weekend. AAA booking data for flights, hotels, rental cars and cruises shows Labor Day travel is on the rise compared to last year. Domestic travel is up 9% over 2023. Find all the details, graphics, best and worst times to travel, top destinations, and gas price info in the AAA Labor Day news release.
This week, 31 Oregon counties have averages below $4 per gallon, compared to 28 counties a week ago:
- Baker $3.71
- Benton $3.38
- Clackamas $3.86
- Columbia $3.98
- Coos $3.95
- Crook $3.84
- Deschutes $3.67
- Douglas $3.68
- Gilliam $3.70
- Grant $3.90
- Harney $3.78
- Hood River $3.62
- Jackson $3.80
- Jefferson $3.57
- Josephine $3.85
- Klamath $3.69
- Lake $3.83
- Lane $3.63
- Lincoln $3.44
- Linn $3.47
- Malheur $3.80
- Marion $3.74
- Morrow $3.63
- Multnomah $3
- Polk $3.66
- Sherman $3.77
- Tillamook $3.85
- Umatilla $3.65
- Union $3.89
- Yamhill $3.85
- Wasco $3.74
The Oregon average began 2024 at $3.79 a gallon compared to $3.80 today. Its lowest price so far this year is $3.58 on February 14 and the highest is nearly $4.51 on May 1. The national average started the year at $3.11 and is at $3.35 today. Its lowest price so far this year is just under $3.07 on January 15 and the highest is just under $3.68 on April 19.
Gas prices are often fairly steady during the summer months, barring hurricanes, supply disruptions, economic forces, and/or geo-political events. Gas prices always rise starting in late winter through the spring as refineries undergo maintenance as the switch to summer-blend fuel occurs. 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 make the change 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 as early as February.
Gas prices typically 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.
Crude oil prices rose above $80 per barrel in mid-August but have remained below that benchmark since then. Major factors continuing to impact global crude oil prices are concerns of escalating tensions in the Middle East and how it could impact global supplies. Markets have also been concerned about weak economic data out of China, a major consumer of crude oil.
Crude prices are impacted by economic news as well as geopolitical events around the world including the war between Israel and Hamas, the war between Russia and Ukraine, and Houthi militant attacks in the Red Sea. In addition, production cuts by OPEC+ have tightened global crude oil supplies, which will continue to impact prices. And we’re in hurricane season, which runs from June 1 to November 30.
The price of crude oil reached the year-to-date high of nearly $87 per barrel on April 5. Major drivers of elevated crude prices have been the unrest in the Middle East, the decision by OPEC+ to keep oil production cuts in place, and Ukrainian attacks on Russian refineries. Russia is a top global oil producer and the refinery attacks have reduced output. Crude prices have been volatile after the attack on Israel by Hamas last October. 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.
Crude oil is trading around $76 today compared to $74 a week ago and $80 a year ago. In 2023, West Texas Intermediate ranged between $63 and $95 per barrel. Crude 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 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, 13% is refining, 16% distribution and marketing, and 15% are taxes, according to the U.S. Energy Information Administration.
Demand for gasoline in the U.S. crept higher from 9.05 million b/d to 9.19 million b/d for the week ending August 16, according to the U.S. Energy Information Administration (EIA). This compares to 8.91 million b/d a year ago. Meanwhile, total domestic gasoline stocks fell from 222.2 to 220.6 million barrels, but gasoline production increased, averaging 9.8 million barrels daily. Crude oil production in the U.S. is at 13.4 million barrels per day, according to the EIA. This remains at a record high. The U.S. produces more crude oil than any other country, according to the EIA.
Quick stats
Oregon is one of 45 states and the District of Columbia with lower prices now than a week ago. Ohio (-11 cents) has the largest week-over-week drop in the nation. Indiana (+3 cents) has the largest weekly increase. The average in Idaho is flat.
Hawaii ($4.66) has the most expensive gas in the nation for the sixth week in a row. California ($4.61) is second, and Washington ($4.18) is third. These are the three states with averages at or above $4 a gallon, same as a week ago. This week 40 states and the District of Columbia have averages in the $3-range. There are seven states with an average in the $2 range this week.
The cheapest gas in the nation is in Oklahoma ($2.89) and Mississippi ($2.89). No state has had an average below $2 a gallon since January 7, 2021, when Mississippi and Texas were below that threshold.
The difference between the most expensive and least expensive states is $1.77 this week, compared to $1.72 a week ago.
Oregon is one of 46 states and the District of Columbia with lower prices now than a month ago. The national average is 16 cents less and the Oregon average is 14 cents less than a month ago. This is the 21st-largest month-over-month decline in the nation. Michigan (-40 cents) has the largest month-over-month drop in the nation. Colorado (+7 cents) has the largest monthly increase in the nation.
All 50 states and the District of Columbia have lower prices now than a year ago. The national average is 47 cents less and the Oregon average is 94 cents less than a year ago. This is the largest year-over-year drop in the nation.
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 slips three cents to $3.71 a gallon. The record high is $5.816 set on June 19, 2022. The Oregon average dips two cents to $3.96. The record high is $6.47 set on July 3, 2022. A year ago the national average for diesel was $4.37 and the Oregon average was $4.94.
Source: AAA