Retail prices have dropped for the fifth week in a row. Retail fuel prices for gasoline dropped $0.10, and $0.06 for diesel. Wholesale prices for gasoline dropped $0.05, and $0.18 for diesel. Despite the volatile crude oil prices, fuel prices are dropping across the nation. Most analysts are pointing at decreased demand for gasoline and winter fuel blends being behind the price drops experienced over the last few weeks.

There is still skepticism within the market as political climates in Israel and Palestine have yet to reach a neutral point. As referenced in the previous market reports, the current situation could lead to a reduced production of oil which will increase prices across the nation. Israel and Palestine are not major oil producers, but as the conflict continues, there are many concerns it will affect overall oil production in the region.

Crude oil is currently trading slightly below $90, at an average of $83. Down two dollars from the week previous. Last week prices dropped throughout the week as the average price last week was $87. Surprisingly, prices are about the same as they were a year ago this time.

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.

It’s essential to recognize that fuel prices are the result of a complex interplay of these and other factors. Additionally, prices may vary by specific regions within Oregon and Washington.