Barney Lerten
PORTLAND, Ore. (KTVZ) – Gas prices are edging lower as June begins, even as crude oil prices are climbing, AAA Oregon/Idaho reported Tuesday.
The Ukrainian attacks on Russia are putting upward pressure on oil prices, but prices remain below $65 per barrel. This is helping to keep pump prices calm even as demand for gasoline climbs. For the week, the national average for regular falls four cents to $3.14 a gallon.
The Oregon average slips three cents to $3.99 a gallon, while Bend’s price also falls about three cents, to about $3.96 a gallon.
Here’s the rest of AAA’s weekly gas prices report for the area:
“Crude oil prices have jumped to start this week, driven by the escalation in the war between Russia and Ukraine. These types of events often put upward pressure on crude prices due to uncertainty about global oil supplies,” says Marie Dodds, public affairs director for AAA Oregon/Idaho.
“Another factor influencing oil prices is that OPEC+ announced over the weekend that it will boost production by 411,000 barrels per day in July. This is the third month in a row that the cartel is increasing output. Normally, this would put downward pressure on crude prices, but investors were expecting it.”
The Oregon average began 2025 at $3.45 a gallon and is currently at $3.99. The highest price of the year so far is $4.02 on May 28. 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 $3.14. 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, 13 Oregon counties have averages at or above $4, down from 14 a week ago.
Clackamas $4.05
Clatsop $4.12
Columbia $4.19
Curry $4.06
Grant $4.04
Harney $4.18
Jackson $4.11
Josephine $4.11
Lake $4.11
Multnomah $4.13
Tillamook $4.16
Wallowa $4.04
Washington $4.11
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 rose slightly from 13.39 to 13.40 million barrels per day for the week ending May 23. 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 mostly in the upper $60s to mid-$70s since last September, but crude prices dropped in early April as markets reacted to President Trumps tariffs and the impact on U.S. and global markets. Additional downward pressure on crude prices came after the decision by OPEC+ to increase production.
The lowest closing price since September was $57.13 on May 5, which was the lowest closing price since February 2021. The recent high price for crude was $80.04 per barrel on January 15, which was the highest price since last August.
Crude oil was trading around $63 on Tuesday, compared to $61 a week ago and $74 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+ in previous years tightened global crude oil supplies, which continued to impact prices. But now the cartel boosted production by 411,000 barrels in May and June, and announced the same increase for July.
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 49% of what we pay for in a gallon of gasoline is for the price of crude oil, 16% is refining, 19% distribution and marketing, and 16% are taxes, according to the U.S. Energy Information Administration.
Demand for gasoline in the U.S. jumped from 8.64 million b/d to 9.45 for the week ending May 23, according to the U.S. Energy Information Administration (EIA). This compares to 9.15 million b/d a year ago. Meanwhile, total domestic gasoline supply decreased from 225.5 million barrels to 223.1. Gasoline production increased last week, averaging 9.8 million barrels per day, compared to 9.6 million barrels daily the previous week.
Pump prices will likely be fairly stable or even tick lower in the short term, if crude oil prices remain in the low $60s.
Quick stats
Oregon is one of 35 states with lower prices now than a week ago. Indiana (-13 cents) has the largest week-over-week decline in the nation. Utah (+6 cents) has the biggest week-over-week increase. The average in South Carolina is flat.
California ($4.76) has the most expensive gas in the nation for the 16th week in a row. Hawaii ($4.48) is second, and Washington ($4.39) is third. These are the three states in the country with averages at or above $4 a gallon. This week 22 states and the District of Columbia have averages in the $3-range. There are 25 states with an average in the $2 range this week.
The cheapest gas in the nation is in Mississippi ($2.65) and Texas ($2.71). No state has had an average below $2 a gallon since January 7, 2021, when Mississippi and Texas were below that threshold. At the time, the COVID-19 pandemic drove significant declines in crude oil and gasoline demand in the U.S. and around the world.
The difference between the most expensive and least expensive states is $2.12 this week, compared to $2.20 a week ago.
Oregon is one of 21 states with higher prices now than a month ago. The national average is three cents less and the Oregon average is nine cents more than a month ago. Ohio (-20 cents) has the largest month-over-month drop in the nation. Washington (+13 cents) has the largest month-over-month increase.
All 50 states and the District of Columbia have lower prices now than a year ago. The national average is 40 cents less and the Oregon average is 26 cents less than a year ago. Maryland (-57 cents) has the largest yearly drop. Washington (-11 cents) has the smallest.
West Coast
The West Coast region continues to have the most expensive pump prices in the nation with all seven states in the top 10. It’s typical for the West Coast to have six or seven states in the top 10 as this region tends to consistently have fairly tight supplies, consuming about as much gasoline as is produced. In addition, this region is located relatively far from parts of the country where oil drilling, production and refining occurs, so transportation costs are higher. And environmental programs in this region add to the cost of production, storage and distribution.
Rank
Region
Price on 6/3/2025
1
California
$4.76
2
Hawaii
$4.48
3
Washington
$4.39
4
Oregon
$3.99
5
Nevada
$3.86
6
Alaska
$3.65
7
Illinois
$3.36
8
Idaho
$3.33
9
Arizona
$3.31
10
Utah
$3.31
As mentioned above, California has the most expensive gas in the country for the 16th week in a row. Hawaii, Washington, Oregon, Nevada, and Alaska round out the top six. Arizona is 9th. Oregon is fourth most expensive for the second week in a row.
Six of the seven states in the West Coast region have week-over-week decreases: California (-9 cents), Nevada (-6 cents), Arizona (-4 cents), Oregon (-3 cents), Washington (-2 cents), Alaska (-2/10ths of a cent). Hawaii (+1 cent) is the only state in the region with a week-over-week increase.
The refinery utilization rate on the West Coast fell from 82.6% to 79.5% for the week ending May 23. This rate has ranged between about 72% to 92% in the last year. The latest national refinery utilization rate ticked down from 90.7% to 90.2%.
The refinery utilization rate measures how much crude oil refineries are processing as a percentage of their maximum capacity. A low or declining rate can put upward pressure on pump prices, while a high or rising rate can put downward pressure on pump prices.
According to EIA’s latest weekly report, total gas stocks in the region rose slightly from 27.1 million bbl. to 27.2 million bbl. An increase in gasoline stocks can put downward pressure on pump prices, while a decrease in gasoline stocks can put upward pressure on pump prices.
Oil market dynamics
Crude oil prices jumped on Monday after Ukraine launched drone attacks on Russia. Russia is a major oil producer, and crude prices often rise when a major producer is involved in geopolitical events.
Meanwhile, the EIA reports that crude oil inventories decreased by 2.8 million barrels from the previous week. At 440.4 million barrels, U.S. crude oil inventories are about 6% below the five-year average for this time of year.
At the close of Friday’s formal trading session, WTI slipped 15 cents to settle at $60.79. At the close of Monday’s formal trading session, WTI jumped $1.73 to settle at $62.52. Today crude is trading around $63 compared to $61 a week ago. Crude prices are about $11 less than a year ago. ($74.22 on June 3, 2024)
Drivers can find current gas prices along their route with the free AAA Mobile app for iPhone, iPad and Android. The app can also be used to map a route, find discounts, book a hotel and access AAA roadside assistance. Learn more at AAA.com/mobile.
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