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Feb-03-2009 13:13printcomments

Possibility of Refinery Strike Impacts Gas Prices

Gas prices continue to creep up, with the national average for regular unleaded jumping another five cents in the past week and the Oregon average going up half a cent.

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Salem-News.com

(PORTLAND, Ore.) - Pump prices show increases over the past week on anxiety over a possible refinery strike by the United Steel Workers Union that would impact about a third of the nation's plants that refine crude oil, according to Oregon AAA.

"However, there seems to be growing optimism that negotiators are closer to reaching a resolution," AAA's Oregon Public Affairs Director Marie Dodds said.

"Oregon's average for regular unleaded increases half a cent in the past week to $1.96, while the national average jumps five cents to $1.89."

She says that over the past month, Oregon's average has increased 17.5 cents, while the national average has shot up by 26 cents.

"The rising pump prices come despite the low price of crude oil and the struggling economy. The main reason for the hike in retail gas prices is because gasoline refiners have been severely cutting back their output of gasoline either by design or due to 'maintenance and operational issues.' Investors seem to be convinced the industry will eventually be able to cut the nation's gasoline inventories enough to keep retail prices at an elevated level."

Crude oil today is trading around $41 per barrel, compared to about $42 last week. Crude has remained fairly stable between $37 and $48 per barrel over the past few weeks, down from the record high of $147 per barrel set last July.

Americans are driving less. Data released last week by the Energy Information Administration shows demand for gas is about five percent less than a year ago. And a year ago, demand was about three percent less than it was in 2007.

Dodds says this month will be an interesting time to watch gas prices. "This is normally the time of year when the West Coast starts to deplete its inventory of winter fuels and prepares for the introduction of warm weather blends. Usually, drivers can expect prices to drop before they rebound in March, April and May. But this is not shaping up to be a 'normal' year, and we haven't seen prices relax. We'll have to wait and see if lower prices make a belated appearance this year."

Oregon's Statewide average is $1.961. Salem has the lowest avage in the state with drivers paying $1.956 a gallon. Portland's average is $1.961. The average price in the Eugene/Springfield area is $1.972, while Medford/Ashland is seeing an average of $2.000 for regular. Drivers in the Vancouver, Washington area are paying an average of $2.016 for self-serve regular.


AAA says six states have averages for regular unleaded at or above $2 a gallon, up from five last week. The most expensive gas in the country for the 32nd week in a row is Alaska at $2.47, followed by Hawaii at $2.35, California at $2.12, Nevada at $2.08, and New York at $2.03. Washington's average increases two cents to $2.03 and is sixth most expensive, down from fourth last week.

Oregon's gas prices are eighth highest, down from seventh last week. Wyoming has the least expensive gas again this week with regular unleaded at $1.56 a gallon.

Diesel prices are down a bit for the week. The national average decreases two cents to $2.37, while Oregon’s average drops a cent-and-a-half to $2.49.

Hawaii has the highest statewide average price for diesel again this week at $4.00, followed by Alaska at $3.51, New York at $2.82, District of Columbia at $2.82 and Connecticut at $2.75.

Oregon's average diesel price is 13th most expensive this week, up from 14th last week. Washington's diesel price drops three cents to $2.56 which is 12th highest, down from tenth last week.

A year ago, the national average for diesel was $3.37 and Oregon's average was $3.28.

Source: Oregon AAA




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ChrisJones February 3, 2009 2:06 pm (Pacific time)

I wonder why oregon's gas prices are so high in the spectrum? (eighth highest) and wyoming is the lowest. I notice a similar parallel in the unemployment rates.

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