Oregon Fuel Price Variance
Fuel Market News
Fuel prices are once again down from a week prior. Wholesale prices dropped this week with gas down $0.40 , diesel down $0.04. The market saw these changed hit the retail market as prices dropped $0.10, and diesel prices dropped $0.14 in Oregon. Gas prices in Washington dropped $0.13 and diesel dropped $0.06. Gas prices are lower in all 50 states with 24 states, seeing double digits including both Oregon and Washington. However, as we mentioned in last weeks report, many analysts are worried about fuel prices and crude oil prices going up given the situation in the Middle East. The current situation could lead to a reduced production of oil which will increase price across the nation. In addition to this the EIA reported that total commercial crude stock of oil has decreased by 2.2 million barrels as of last week
Gas prices are typically cheaper during the fall season as winter blends of fuel hit the market. Winter blends of fuel are cheaper to manufacturer, which also makes it cheaper to distribute. As the winter blends hit the market it will be crucial that oil prices also remain below $90 per barrel, and with the current political climate in the Middle East, this is rather uncertain.
Crude oil is the main ingredient for gasoline and diesel. Per AAA, on average about 50% of what you pay at the pump is the price of crude oil, breaking down as 25% refining, 11% distribution & marketing and 14% taxes. A helpful breakdown for consumers wondering why they are paying the prices that they pay. Crude Oil is trading around $85 per barrel compared to $90 last week and $91 a year ago.
The West Coast region is one of the most expensive regions for fuel given its distance from refineries and the cost of transporting fuel to the region as well as the environmental taxes on fuel.