Drivers across the United States have been feeling slight relief at the pump, but this period of declining gas prices may be drawing to a close. According to Portland Local News, most states are witnessing a creep upward in gas prices, although Oregon has continued to enjoy a slight decrease. The national average currently sits at $3.13 per gallon, a four-cent increase compared to last week while Oregon's average has dipped two cents to $3.62, bucking the upward trend for now.
The slight shift towards higher numbers comes after recent wintry weather and positive economic signals which, "Pump prices had been moving up and down slightly for the past few weeks but now we’re seeing larger increases in some states," according to Marie Dodds, the public affairs director for AAA Oregon/Idaho, however, the likelihood of further increases hinges on the trajectory of crude oil prices a jump in these could signal more widespread hikes in pump prices. A normal trend sees gas prices ticking up in the first half of the year due to a combination of factors like refinery maintenance, increased demand, and the switch to summer-blend gasoline.
Meanwhile, geopolitical tensions have injected volatility into crude oil markets, especially after the recent drone attack on U.S. troops and ongoing assaults on commercial vessels in the Red Sea and the tension surrounding Israel and Hamas in the Middle East have heightened worries about the potential impact on oil production in the region, the price of crude is hovering now around $78 as reported by Portland Local News.
Supporting this cautious outlook, Patrick De Haan, head of petroleum analysis at GasBuddy, predicted in a statement obtained by WANE.com that "while prices have inched up and may continue to slowly rise, I believe the larger increases will be witnessed in a few weeks as we enter mid-February, lasting through April or May, during which the national average could rise 35 to 85 cents per gallon." Furthermore, addressing the past trends and data, the average regular gas price in the U.S. as reported on Jan. 29 by AAA was $3.107 per gallon, evidencing a notable decrease compared to the dizzying heights of over $5 per gallon seen in June 2022, thanks to a mix of low demand and stable oil prices, facts reflected in an article from NerdWallet.
The resilience of current low gas prices remains questionable, thus far, the prices have ebbed with gas demand being overshadowed by the ample domestic supply, and there's a consensus among experts that normal patterns held sway last year post an anomalous 2022 rocked by Russia’s invasion of Ukraine and inflation pressures, states NerdWallet. However, with various factors including shifting global economic climates and international discord at play, motorists should keep an eye on the pumps as the tides of fuel costs may very well be on the rise again.
