Gas Prices Dip Nationwide but Remain Historically High for This Time of Year
Gas and diesel prices are dropping in most U.S. states, including Oregon, as crude oil exports from the Middle East rise and the Group of Seven nations release oil stocks. Despite this decline, prices remain the highest ever recorded for this time of year. The national average for regular gasoline fell nine cents to $4.37 per gallon this week, while Oregon's average dropped two cents to $5.04 per gallon.
September saw record-high gas prices, with the national average reaching $4.33, surpassing the previous September record of $3.83 set in 2023. Oregon's average was $5.06, up from $4.80 in 2022. Marie Dodds, public affairs director for AAA Oregon/Idaho, noted that while prices typically fall more sharply this time of year due to lower demand and the switch to cheaper winter-blend fuel, the ongoing conflict in the Middle East is keeping prices elevated.
The conflict with Iran has significantly impacted gas prices, which were much lower before the airstrikes began. The national average was $2.98, and Oregon's average was $3.92 on February 28, 2024. Crude oil prices have been volatile, ranging between $68 and nearly $113 per barrel since the conflict started. Every $1 increase in crude oil price leads to a 2.4- to 2.5-cent increase in gasoline prices.
Oil exports from the Middle East have increased, particularly from Saudi Arabia, with shipping traffic in the Strait of Hormuz approaching pre-conflict levels. However, regional vessel attacks have also risen, posing risks to global oil supplies. The Strait of Hormuz is a critical passageway for about 20% of the world's oil and refined products, making any disruption a significant factor in crude oil price fluctuations.