Most states including Oregon are seeing gas prices change by a nickel or less on the week. While refinery maintenance season continues to impact gasoline supplies, crude oil prices have plunged to their lowest since the COVID years. The major drivers are economic concerns and the announcement by OPEC+ that it will raise oil production in June, in addition to increases that went into effect in May. For the week, the national average for regular holds steady at $3.16 a gallon. The Oregon average slips two cents to $3.90 a gallon.
“Crude oil prices are at four-year lows, and crude prices in April had the largest monthly decline since November 2021. OPEC+ says it will bump up oil production in June by 411,000 barrels per day after the same increase for the month of May,” says Marie Dodds, public affairs director for AAA Oregon/Idaho. “At the same time, the Trump administration’s tariffs have sparked economic concerns, which also puts downward pressure on crude oil prices as contracting economies consume less oil than growing economies.”
The Oregon average began 2025 at $3.45 a gallon and is currently at $3.90. The highest price of the year so far is $4.01 on April 5. 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 $3.16. 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 five Oregon counties have averages at or above $4:
- Columbia $4.07
- Harney $4.08
- Jackson $4.01
- Multnomah $4.08
- Washington $4.04
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 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 holding steady at 13.46 million barrels per day for the week ending April 25. 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, but crude prices dropped 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 $59 today compared to $60 a week ago and $78 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, 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+ tightened global crude oil supplies, which continued to impact prices. But now the cartel is boosting production again, by 411,000 barrels in May and the same amount in June.
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 54% of what we pay for in a gallon of gasoline is for the price of crude oil, 14% is refining, 16% distribution and marketing, and 17% are taxes, according to the U.S. Energy Information Administration.
Demand for gasoline in the U.S. decreased from 9.41 b/d last week to 9.10 for the week ending April 25, according to the U.S. Energy Information Administration (EIA). This compares to 8.62 million b/d a year ago. Meanwhile, total domestic gasoline supply decreased from 229.5 million barrels to 225.5. Gasoline production decreased last week, averaging 9.5 million barrels per day, compared to 10.1 million barrels daily the previous week.
Pump prices will likely stay fairly steady or decrease somewhat, as markets react to economic developments.
Quick stats
Oregon is one of 32 states and the District of Columbia with lower prices now than a week ago. Only three state are seeing prices change by more than a nickel on the week. Indiana (+12 cents) has the biggest week-over-week jump in the nation. Minnesota (-6 cents) has the largest week-over-week decline. The average in Connecticut is flat.
California ($4.78) has the most expensive gas in the nation for the 12th week in a row. Hawaii ($4.50) is second, and Washington ($4.26) is third. These are the three states in the country with averages at or above $4 a gallon. This week 23 states and the District of Columbia have averages in the $3-range. There are 24 states with an average in the $2 range this week.
The cheapest gas in the nation is in Mississippi ($2.65) and Louisiana ($2.70). 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 $2.14 this week, same as a week ago.
Oregon is one of 49 states and the District of Columbia with lower prices now than a month ago. The national average is 10 cents less and the Oregon average is 11 cents less than a month ago. Minnesota (-25 cents) has the largest month-over-month drop in the nation. Utah (+7 cents) is the only state with a month-over-month increase in the country.
All 50 states and the District of Columbia have lower prices now than a year ago. The national average is 49 cents less and the Oregon average is 57 cents less than a year ago. Alaska (-78 cents) has the largest yearly drop. Colorado (-13 cents) has the smallest.
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.
As mentioned above, California has the most expensive gas in the country for the 12th week in a row. Hawaii, Washington, Oregon, Nevada, and Alaska round out the top six. Arizona is 11th. Oregon is fourth most expensive for the fourth week in a row.
Five states in the West Coast region have small week-over-week declines: Arizona (-4 cents), Nevada (-4 cents), Oregon (-2 cents), Washington (-2 cents), and Alaska (-2 cents). Hawaii (+1 cent) and California (+1/10th of a cent) have small increases on the week.
The refinery utilization rate on the West Coast rose from 73.7% to 76.0% for the week ending April 11. This rate has ranged between about 72% to 92% in the last year. The latest national refinery utilization rate ticked up from 88.1% to 88.6%.
The refinery utilization rate measures how much crude oil refineries are processing as a percentage of their maximum capacity. A low or declining rate can put upward pressure on pump prices, while a high or rising rate can put downward pressure on pump prices.
According to EIA’s latest weekly report, total gas stocks in the region increased slightly from 26.06 million bbl. to 26.10 million bbl. An increase in gasoline stocks can put downward pressure on pump prices, while a decrease in gasoline stocks can put upward pressure on pump prices.
Oil market dynamics
Crude oil prices dropped about 2% Monday to the lowest closing price since February 2021 on news that OPEC+ would boost production for June in addition to increases in May. OPEC+ says it will hike production by another 411,000 barrels per day in June. The cartel raised production by the same amount in May. Economic concerns due to tariffs had already pushed crude prices lower, and Monday markets are reacting to more supplies of crude oil at a time when demand may be shrinking. Crude prices are rebounding somewhat today on reports of higher demand in China and Europe as well as increasing tensions in the Middle East.
Meanwhile, the EIA reports that crude oil inventories decreased by 2.7 million barrels from the previous week. At 440.4 million barrels, U.S. crude oil inventories are about 6% below the five-year average for this time of year.
At the close of Friday’s formal trading session, WTI fell 95 cents to settle at $58.29. At the close of Monday’s formal trading session, WTI fell $1.16 to settle at $57.13, the lowest closing price since February 2021. Today crude is trading around $59 compared to $60 a week ago. Crude prices are about $19 less than a year ago. ($78.48 on May 6, 2024)
Drivers can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.
Diesel
For the week, the national average edges down one cent to $3.54 a gallon. The record high is $5.816 set on June 19, 2022. The Oregon average also dips one cent to $3.90. The record high is $6.47 set on July 3, 2022. A year ago the national average for diesel was $3.97 and the Oregon average was $4.26.
Source: AAA