For an eighth consecutive week, gas prices have edged higher, particularly hitting West Coast states like Oregon where, despite a national plateau, the needle continues to climb. As informed by 1190 KEX, the current average in Oregon has bumped up another eight cents, topping off at $4.29 per gallon, this marks an almost 50-cent increase from the beginning of the year when the averages hovered around $3.79.
Even as the national average holds steady at $3.54, Oregon's surge is symptomatic of dwindling gasoline stocks on the West Coast prompting this continued ascent, nearly half of all states are feeling this crunch while the rest see prices leveling off, or even decreasing, but the steady demand and global events continue pushing the price for Oregonians sharply upward. Marie Dodds, public affairs director for AAA Oregon/Idaho, explained the seasonal dynamics to Z100 Portland, attributing the hike to "seasonal factors of refinery maintenance, the switch to summer-blend fuel, and the increase in demand for gas as people get out and about more as the weather improves and the days get longer."
Aside from seasonal patterns, geopolitical strife plays a hefty role in the crimping supply and surging prices, with incidents such as drone attacks on Russian refineries the tension following attacks in the Red Sea, and the conflict between Israel and Hamas, all of which fosters an environment where the crude oil prices remain over $80 per barrel, as they have since mid-March, according to 1190 KEX.
Moreover, only two counties in Oregon, Baker, and Malheur are holding out with averages below the $4 mark, at $3.85 and $3.84 respectively and though the East Coast is typically the last to transition to summer-blend fuel, the West Coast is already in the throes of this annual changeover, hence their early price surges, which is only exacerbated by the domino effect of global demands and limitations such as production cuts by OPEC+ and Ukraine's strategic moves against Russian facilities which are having a substantial impact on the tightening of the global supplies. The price of West Texas Intermediate crude oil is particularly telling of these tensions trading around $85 says Z100 Portland.
Amid these price escalations, it's crucial to note that the U.S. demand for gas has slightly decreased from 8.81 to 8.72 million barrels per day for the week ending March 22, and though typically a decline in demand should reflect in lower pump prices, the resilience of rising oil prices keeps them sharply amplified instead, as detailed by the U.S. Energy Information Administration reports referenced by Z100 Portland.
