New record highs after the price of oil jumped above $110 per barrel
ccording to AAA Oregon, the national and Oregon averages skyrocket to new record highs after the price of oil jumped above $110 per barrel last week. Drivers are paying more to fill up in 49 states including Oregon.
For the week, the national average for regular soars 17 cents to $4.37 a gallon. The Oregon average jumps 16 cents to $4.85.
The national and Oregon averages are both at new record highs, eclipsing the record highs set in March.
“The cost of crude oil accounts for more than half of what we pay at the pumps, so higher crude oil prices translate into more expensive gas and diesel. Unfortunately, these high pump prices are not likely to ease anytime soon,” says Marie Dodds, public affairs director for AAA Oregon/Idaho.
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, from 8.74 million b/d to 8.86 million b/d. Total domestic gasoline stocks decreased by 2.2 million bbl to 228.6 million bbl last week, according to the U.S. Energy Information Administration (EIA). Increasing gas demand and rising oil prices have pushed pump prices higher. Pump prices will likely face upward pressure as oil prices remain above $100 per barrel.
Oregon is one of 49 states and the District of Columbia where prices have risen in the last week, and 44 states and D.C. have double-digit increases. Indiana (+28 cents) has the largest weekly jump. Nevada (+3 cents) has the smallest weekly gain. Utah (-1 cent) is the only state in the nation with a weekly decline.
California ($5.84) is the most expensive state in the nation and is one of three states with an average above $5 a gallon. There are 44 states and the District of Columbia with an average at or above $4 a gallon.
The cheapest gas in the nation is in Georgia ($3.90) and Missouri ($3.93). This week no states have averages below $3 a gallon, same as a week ago. For the 70th week in a row, no state has an average below $2 a gallon.
Oregon is one of 48 states and the District of Columbia with higher prices now than a month ago. The national average is 26 cents more and the Oregon average is 15 cents more than a month ago. This is the 32nd-largest monthly jump in the nation. Utah (-1 cent) and Nevada (-1/10th of a cent) are the only states with monthly declines.
All 50 states and the District of Columbia have higher prices now than a year ago. Every state and D.C. have a current average that’s a dollar or more higher than a year ago. The national average is $1.41 more and the Oregon average is $1.51 more than a year ago. This is the 12th-largest yearly increase in the nation. California (+$1.74) has the biggest yearly increase. Colorado (+$1.09) has the smallest year-over-year increase.
A D V E R T I S E M E N T
A D V E R T I S E M E N T
he West Coast region continues to have the most expensive pump prices in the nation with all seven states in the top 10. This is typical for the West Coast as this region tends to consistently have fairly tight supplies, consuming about as much gasoline as is produced.
California is the most expensive state for the 68th week in a row with Hawaii, Nevada, Washington, Oregon, and Alaska rounding out the top six. Arizona is ninth. Oregon is fifth for the fourth week in a row.
All seven states have week-over-week increases. Oregon (+16 cents) has the largest weekly increase in the region. Hawaii (+3 cents) and Nevada (+3 cents) have the region’s smallest weekly increases.
The refinery utilization rate on the West Coast rose slightly from 79.1% to 79.6% for the week ending April 29. The rate has ranged between about 76% and 90% in the last year.
According to EIA’s latest weekly report, total gas stocks in the region increased from 30.52 million bbl to 30.76 million bbl.
Oil market dynamics
Crude oil prices rose last week after the European Union announced a proposal to ban Russian oil imports within six months, while refined product imports would be prohibited by the end of 2022. The price increases occurred despite continuing COVID lockdowns in China weighing down crude demand and EIA reporting that total domestic crude inventories increased by 1.3 million bbl to 415.7 million bbl, which is approximately 14 percent lower than the storage level at the end of April 2021. Since supply remains tight and the market remains highly volatile, crude prices will likely continue to fluctuate this week, potentially pushing pump prices higher.
At the close of Friday’s formal trading session, WTI increased by $1.51 to settle at $109.77. At Monday’s formal trading session, WTI fell $6.68 to close at $103.09. Today crude is trading around $100, compared to $102 a week ago. Crude prices are about $38 more than a year ago.
For the week, the national average soars 18 cents to $5.55 a gallon. This is a record high. Oregon’s average jumps 13 cents to $5.60. This is also a record high. A year ago the national average for diesel was $3.12 and the Oregon average was $3.28.
|Post Date: 2022-05-10 17:23:18||Last Update: 2022-05-10 20:25:02|