Crude Prices Surge Amid Iran War Driving US Gas Prices to Record High
Drivers across Oregon and the US are paying more at the pump due to rising gas prices. The national average price for regular gasoline increased by five cents over the past week to $4.07 a gallon, its highest mid-August price ever. In Oregon, the average price also rose by five cents to $4.72 a gallon, its highest mid-August price since 2022 and the second-highest on record.
The elevated crude oil prices are driving up pump prices, with West Texas Intermediate trading around $85 compared to $63 a year ago. The closure of the Strait of Hormuz due to the ongoing war with Iran has significantly restricted shipping traffic, pushing crude prices higher.
According to AAA, the national average for regular gas surpassed its previous record high for mid-August set in 2022. Oregon's mid-August record remains $4.84 on this date in 2022, while the state average is now $4.72. The agency noted that pump prices and crude oil prices surged in 2022 following Russia's invasion of Ukraine.
AAA also reported that demand for gasoline in the US decreased from 9.03 million barrels per day to 8.96 million for the week ending Aug. 7, while total domestic gasoline supply remained flat at 211.3 million. Gasoline production decreased from 209.7 million barrels to 208.7 million.
The West Coast continues to have the most expensive pump prices in the nation, with all seven states in the region ranking in the top 10. California had the highest average in the nation at $5.57, followed by Hawaii at $5.42 and Washington at $5.20. Oregon ranked sixth at $4.72.