The slide in gas prices has slowed as crude oil prices and U.S. demand for gasoline rise. The ongoing war in Ukraine and concerns of less Russian oil on the global market have sent crude prices back above $100 dollars per barrel, and that’s putting upward pressure on pump prices. For the week, the national average for regular holds steady at $4.10 a gallon. The Oregon average ticks up a penny to $4.68.
The national and Oregon averages are both a bit lower than their record highs set last month. The national average peaked at $4.331 on March 11 while the Oregon average peaked at $4.739 on March 11. These prices eclipse the old record highs set in 2008 when the national average peaked at $4.11 on July 17, and the Oregon average peaked at $4.29 on July 3.
“Demand for gasoline in the U.S. is edging up as pump prices dip below the record highs set in March. We tend to see gasoline consumption increase this time of year as the days get longer and people drive more,” says Marie Dodds, public affairs director for AAA Oregon/Idaho. “But these lower pump prices could be temporary if the global price of oil increases due to constrained supply.”
On average, about 53% of what we pay for in a gallon of gasoline is for the price of crude oil,12% is refining, 21% distribution and marketing, and 15% are taxes, according to the U.S. Energy Information Administration.
About 3% of oil, and a total of 8% of oil and refined products used in the U.S. last year came from Russia, while about 25% of Europe’s oil is imported from Russia. The U.S. is the largest oil producer in the world. Other top producers are Saudi Arabia and Russia.
Demand for gasoline in the U.S. is up slightly as an increasing number of markets saw pump prices fall below $4 a gallon. Demand climbed from 8.5 million b/d to 8.73 million b/d. Total domestic gasoline stocks decreased by 3.5 million bbl to 233.1 million bbl last week, according to the U.S. Energy Information Administration (EIA).
Meantime, consumers can enjoy a tasty gas price–related treat courtesy of Krispy Kreme Doughnuts. For the next three Wednesdays, Krispy Kreme will lower the price of a dozen Original Glazed donuts to the national average that AAA reports each Monday. The offer runs through Wednesday, May 4. A dozen glazed doughnuts typically cost around $12. This Wednesday’s dozen should cost $4.08, not including sales tax, only in shop, drive-through, and online pickup.