National Average Gasoline Price Dips; Oregon Statewide Average Climbs

"It appears prices may be settling, although we did see a fairly substantial increase in Oregon average prices during the past week. The statewide average dipped overnight, and that's consistent with the national average holding steady, lower crude prices on Monday. We won't call it a trend just yet, but optimism that we'll see prices moving downward." Elliot Eki Oregon AAA

Salem-News.com

(SALEM) - In the past week, the national average price for a gallon of regular gasoline dipped by almost 2-cents per gallon, while in Oregon it gained more than 7-cents per gallon to a current average of $3.04. Salem`s current average of $2.98 is the lowest in the state, with Eugene residents still paying the highest average, $3.07. Portland residents are paying $2.99. "On the bright side, we saw crude oil close Monday below $70 per barrel for the first time in several weeks," said AAA Oregon Public Affairs Director Elliott Eki. "The statewide average gasoline price is also down one-tenth cent since Monday. While that's not much, it is some cause for optimism that prices might begin falling soon." But, analysts say motorists should not expect large price drops nor should they think the highest prices of the year are behind us. In addition to the coming hurricane season, simmering global political issues increases the possibility of a major oil supply disruption. Market analysts expect that as political tensions ebb and flow, so will crude oil prices. Conversion to the cleaner burning summer fuel is near completion and pricing pressure has eased a bit. On Wednesday, the Department of Energy will report its weekly inventory estimates, and if supplies show a healthy growth, a gradual price reduction is expected between now and the Memorial Day weekend. Analysts at the Oil Price Information Service, which provides AAA with fuel data, continue to forecast that fuel prices could fall by as much as 15-cents per gallon by mid-June. But, they say the falling prices will stabilize once the hurricane season arrives, which will spark fears that Gulf Coast fuel production could be disrupted.

At $3.04, Oregon's average gasoline price is 8th highest in the nation. Hawaii has the highest statewide average price at $3.40. California's is up to $3.37; Nevada's is up to $3.17; Washington's is $3.10, and Idaho's is $2.87. Oklahoma has the lowest average price at $2.69. The national average diesel price nudged upward to $2.97 per gallon. In California, diesel averages $3.41 per gallon; in Washington, it's $3.23; in Nevada, it's up 11-cents to $3.25; in Idaho, it rose another 12-cents to $3.22; and, in Oregon, it's up 12-cents to $3.17.