Gas prices are stable or slipping in most states this week, including Oregon, as the cost of crude oil falls and U.S. demand for gas ticks lower. However, pump prices still remain near record highs. For the week, the national average for regular falls a nickel to $4.97 a gallon. The Oregon average slips one-and-a-half cents to $5.53.
“The elevated gas prices may have led to a small drop in demand for gas in the U.S. as fewer drivers filled up their tanks last week. The dip in demand and falling crude oil prices have taken some steam out of skyrocketing pump prices,” says Marie Dodds, public affairs director for AAA Oregon/Idaho. “The slight reduction in demand is happening right before drivers fill up for what AAA forecasts will be an extremely busy 4th of July holiday weekend.”
Find all the details about Independence Day travel in the AAA 4th of July travel news release.
Crude oil prices have fallen about $10 per barrel in the last week amid broad market concern regarding the potential for economic growth to slow after the U.S. Federal Reserve last week raised the interest rate by 0.75 percent. Slower than expected economic growth could cause crude demand to decline, leading prices to follow suit. However, the decline could be temporary because on a global scale, demand for oil outpaces tight supplies as the world emerges from the COVID-19 pandemic. A year ago, crude was around $65 per barrel compared to $109 today.
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 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.
Demand for gasoline in the U.S. edged lower from 9.2 million b/d to 9.09 b/d. Total domestic gasoline stocks decreased by 700,000 bbl to 217.5 million bbl last week according to the U.S. Energy Information Administration (EIA).
The slight drop in gas demand has helped to limit pump price increases. However, as crude oil prices remain volatile, and with demand expected to rise during the Independence Day holiday travel period, the price per gallon for gasoline will likely remain elevated.
But on the bright side, consumers will once again enjoy a tasty AAA gas price–related treat courtesy of Krispy Kreme Doughnuts. Running every Wednesday through Labor Day, Krispy Kreme will lower the price of a dozen Original Glazed donuts to the national average that AAA reports each Monday. A dozen glazed doughnuts typically cost around $12. This Wednesday’s dozen should cost $4.98, not including sales tax, and is available only in shop, drive-thru, or online pickup.