PORTLAND, Ore., – No relief for drivers due to the high cost of crude oil. Pump prices are climbing in 49 states, including Oregon, this week.
Fear of a global energy supply disruption due to Russia’s invasion of Ukraine outweighs the demand concerns prompted by the impact of COVID-19 on China’s economy. The cost of a barrel of crude continues to hover around $100. For the week, the national average for regular gains seven cents to $4.20 a gallon. The Oregon average climbs two cents to $4.69.
“As long as the supply remains tight, crude oil prices are not likely to fall, which means consumers will continue to face elevated prices at the pump,” says Marie Dodds, public affairs director for AAA Oregon/Idaho. “It now costs drivers in the U.S. about $23 more to fill up than a year ago.”
The national and Oregon averages are both a bit lower than their record highs set last month. The national average peaked at $4.331 on March 11 while the Oregon average peaked at $4.739 on March 11. These prices eclipse the old record highs set in 2008 when the national average peaked at $4.11 on July 17, and the Oregon average peaked at $4.29 on July 3.
On average, about 53% of what we pay for in a gallon of gasoline is for the price of crude oil,12% is refining, 21% distribution and marketing, and 15% are taxes, according to the U.S. Energy Information Administration.
About 3% of oil, and a total of 8% of oil and refined products used in the U.S. last year came from Russia, while about 25% of Europe’s oil is imported from Russia. The U.S. is the largest oil producer in the world. Other top producers are Saudi Arabia and Russia.
Demand for gasoline in the U.S. is down slightly, from 8.87 million b/d to 8.74 million b/d. Total domestic gasoline stocks decreased by 1.6 million bbl to 230.8 million bbl last week, according to the U.S. Energy Information Administration (EIA). Although lower gas demand would typically push pump prices lower, the fluctuating oil price and tight gasoline supply have pushed pump prices higher. Pump prices will likely face upward pressure as oil prices remain above $100 per barrel.
Meantime, consumers can enjoy a tasty gas price–related treat courtesy of Krispy Kreme Doughnuts. For the next two Wednesdays, Krispy Kreme will lower the price of a dozen Original Glazed donuts to the national average that AAA reports each Monday. The offer runs through Wednesday, May 4. A dozen glazed doughnuts typically cost around $12. This Wednesday’s dozen should cost $4.19, not including sales tax, only in shop, drive-through, and online pickup.