Crude Prices Rebound, but Pump Prices Fall

"Gas prices are down for the third week in a row, even as crude oil prices rebound somewhat. The national average for regular unleaded falls four cents to $2.66, and Oregon′s average drops one-and-a-half cents to $2.77." AAA Oregon Public Affairs Director Marie Dodds says, "The price of crude oil is back above $75 per barrel as a result of some positive economic news, some international tension and a weakened dollar. But pump prices are down a few more cents this week."

Crude oil today is trading around $77 per barrel, up from $75 last week. Last week, crude fell below $74 after surging to a 15-month-high in January of more than $83. Crude′s latest rally is sparked by reports this week showing improvements in U.S. manufacturing and personal incomes, as well as an increase in marketing activity reported in Europe and China. This generates investor optimism that an economic recovery is moving forward. Employment data to be released this Friday will give investors some additional information on the shape of the economy. Despite some recent optimism, there′s still a huge inventory of oil, and demand is down. The U.S. reports a two percent drop in oil demand for the last four weeks compared to the prior year.

At the same time, investors are concerned about developments in Nigeria. A pipeline there was damaged over the weekend, shutting down oil production at three pumping stations, and the country′s main militant group said it would not follow a cease-fire deal reached with the government last fall. Also adding to the unease is President Obama′s decision to bolster U.S. naval presence in the Persian Gulf in another round of Iranian saber rattling.

AAA believes that as long as the broad set of economic data remains mixed, retail gas prices will remain fairly stable over the next few weeks, and may even drop a few more cents.

Gas prices are 80 to 90 cents higher than a year ago, when the national average was $1.88 and Oregon′s average was $1.96.

Two states have averages for regular unleaded at or above $3 a gallon, down from three last week.  Hawaii has the most expensive gas for the third week in a row at $3.40, followed by Alaska at $3.36, California at $2.99 (down three cents), New York at $2.90, and Washington at $2.86 (down two cents and fifth most expensive, up from sixth last week.) Oregon is tenth, up from 11th last week. Missouri is the state with the least expensive gas for the second week in a row at $2.43.

Diesel prices are inching down. The national average falls three cents to $2.86, and Oregon’s average drops two cents to $2.85.  Hawaii has the highest statewide average price for diesel again this week at $3.96, followed by Alaska at $3.66, Connecticut at $3.13, New York at $3.13 and District of Columbia at $3.11. Washington′s average diesel price falls three cents to $2.99 and is 11th highest, same as last week. Oregon′s average is 27th up from 29th last week. A year ago, the national average for diesel was $2.37 and Oregon′s average was $2.48.

Get the latest fuel prices at AAA′s Daily Fuel Gauge at www.aaafuelgaugereport.com. To check fuel prices across Oregon and the nation, go to the AAA Fuel Price Finder at www.AAA.com.