Pump prices are calming down after a few weeks of increases. Crude oil prices have plunged to around $60 per barrel, on global economic concerns as well as an increase in production by OPEC+. These factors are putting downward pressure on pump prices at the time of year when they normally increase. For the week, the national average for regular loses seven cents to $3.17 a gallon. The Oregon average slips two cents to $3.98 a gallon.
“Markets have see-sawed since the Trump administration announced sizeable tariffs, then postponed some of them. Crude oil prices often go up and down with the markets, and crude prices have fallen to some of the lowest levels in four years. In addition, OPEC+ says it will increase oil production. These factors are driving the declines in pump prices,” says Marie Dodds, public affairs director for AAA Oregon/Idaho.
The Oregon average began 2025 at $3.45 a gallon and is currently at $3.98. The highest price of the year so far is $4.01 on April 5. The lowest price of the year so far is just under $3.45 a gallon on January 2.
The national average began 2025 at $3.06 a gallon and is currently at $3.17. The highest price of the year so far is $3.27 on April 4. The lowest price of the year so far is $3.06 on January 5.
This week 12 Oregon counties have averages at or above $4, down from 14 counties a week ago:
Clackamas $4.08
Clatsop $4.20
Columbia $4.21
Harney $4.08
Jackson $4.07
Josephine $4.14
Lake $4.05
Multnomah $4.16
Sherman $4.01
Tillamook $4.18
Wallowa $4.04
Washington $4.13
Gas prices typically rise starting in mid-to-late winter and early spring as refineries undergo maintenance ahead of the switch to summer-blend fuel, which is less likely to evaporate in warmer temperatures. The switch occurs first in California, which is why pump prices on the West Coast often rise before other parts of the country. The East Coast is the last major market to switch to summer-blend fuel. Most areas have a May 1 compliance date for refiners and terminals, while most gas stations have a June 1 deadline to switch to selling summer-blend until June 1. Switch-over dates are earlier in California with some areas in the state requiring summer-blend fuel by April 1. Some refineries will begin maintenance and the switchover in February.
Gas prices usually drop in the fall, due to the switch from summer-blend to winter-blend fuel, which costs less to produce. The switch starts in September. Many areas, including Oregon, can sell winter-blend fuel starting September 15. However, Northern and Southern California require summer-blend fuel through October 31. Prices usually decline to their lowest levels of the year in late fall and early winter before increasing again in the late winter and early spring.
Meanwhile, crude oil production in the U.S. remains near record highs. The U.S. Energy Information Administration (EIA) reports that crude production in this country is fell from 13.58 to 13.46 million barrels per day for the week ending April 4. The record high is 13.63 million barrels per day for the week of December 6. Production has been at 13.5 million barrels per day many times since October. The U.S. has been the top producer of crude oil in the world since 2018 and has been increasing its oil production since about 2009.
The U.S. price of crude oil (West Texas Intermediate) had been in the upper $60s to mid-$70s for much of the last three months, but crude prices have dropped as markets reacted to President Trumps tariffs and the impact on U.S. and global markets. The recent high price for crude was $80.04 per barrel on January 15, which was the highest price since last August. The lowest closing price since September was $59.58 on April 8, which was the lowest closing price since April 2021.
Crude oil is trading around $61 today compared to just under $60 a week ago and $85 a year ago. In 2024, West Texas Intermediate ranged between $66 and $87 per barrel. In 2023, WTI ranged between $63 and $95 per barrel. WTI reached recent highs of $123.70 on March 8, 2022, shortly after the Russian invasion of Ukraine, and $122.11 per barrel on June 8, 2022. The all-time high for WTI crude oil is $147.27 in July 2008.
Crude prices are impacted by economic news as well as geopolitical events around the world including the current economic uncertainty, unrest in the Middle East and the war between Russia and Ukraine. Russia is a top global oil producer, behind the U.S. and Saudi Arabia. Crude prices have been volatile after the attack on Israel by Hamas in October 2023. While Israel and the Palestinian territory are not oil producers, concerns remain that the conflict could spread in the Middle East, which could potentially impact crude production in other oil-producing nations in the region. In addition, production cuts by OPEC+ tightened global crude oil supplies, which continued to impact prices. The cartel has said it would boost production by 411,000 barrels a day in May.
Crude oil is the main ingredient in gasoline and diesel, so pump prices are impacted by crude prices on the global markets. On average, about 58% of what we pay for in a gallon of gasoline is for the price of crude oil, 10% is refining, 16% distribution and marketing, and 16% are taxes, according to the U.S. Energy Information Administration.
Demand for gasoline in the U.S. decreased from 8.49 b/d to 8.42 for the week ending April 4, according to the U.S. Energy Information Administration (EIA). This compares to 8.61 million b/d a year ago. Meanwhile, total domestic gasoline supply decreased from 237.6 million barrels to 236.0. Gasoline production decreased last week, averaging 8.9 million barrels per day, compared to 9.3 million barrels daily the previous week.
Pump prices will likely continue to move up and down, as markets respond to economic developments.
