Gas prices continue to move lower, declining in 42 states, including Oregon, this week. The average price for regular gas in Oregon has dipped below $5 a gallon for the first time since September 4. But crude oil prices are back above $100 per barrel, which could put upward pressure on pump prices again. For the week, the national average for regular gasoline loses six cents to $4.28 a gallon. The Oregon average falls seven cents to $4.93 a gallon.

“Drivers are getting a little relief when they fill up their tanks, but with crude oil prices rising again, the declining pump prices may not last long,” says Marie Dodds, public affairs director for AAA Oregon/Idaho.

Gas prices are significantly more expensive than they were before the conflict with Iran began. The National average for regular gas was $2.98 and Oregon average was $3.92 on Feb. 28, the day the U.S. and Israel launched airstrikes against Iran.

Crude oil prices remain volatile, with dramatic swings driven by concerns of how the conflict with Iran impacts global oil supplies. Since the conflict with Iran started, prices for West Texas Intermediate, the U.S. benchmark for crude, have ranged between $68 and nearly $113 per barrel. Crude was at $67 per barrel on Feb. 27, the day before the conflict began.

In general, every $1 increase in the price of crude oil leads to a 2.4- to 2.5-cent increase in the price of gasoline.

Tensions have escalated again in the Strait of Hormuz with strikes on vessels in the key waterway. Shipping traffic in the Strait of Hormuz had been increasing in the last few weeks. Normally, about 20% of the world’s oil and refined products flow through the Strait of Hormuz, which is the narrow passageway of the Persian Gulf and is bordered by Iran. Tankers traveling through the Strait of Hormuz carry oil from major producers in the Middle East including Saudi Arabia, Kuwait, Bahrain, UAE, Qatar, Iraq and Iran. Any disruption in the straight can impact global oil supplies and send crude oil prices higher.

The Oregon average for regular gas began 2026 at $3.42 a gallon. The highest price of the year so far is $5.353 on May 20. The lowest price of the year so far is $3.33 on January 20. The record high for the Oregon average is $5.548 set on June 15, 2022.

The Washington average for regular gas began 2026 at $3.86 a gallon. The highest price of the year so far is $5.789 on May 20, which is the record high for Washington. The lowest price of the year so far is $3.79 on January 14.

The national average began 2026 at $2.83 a gallon. The highest price of the year so far is $4.564 on May 21. The lowest price of the year so far is $2.795 on January 11. The record high for the national average is $5.016 set on June 14, 2022.

Demand for gasoline in the U.S. gasoline decreased from 8.77 million barrels per day to 8.41 million for the week ending October 9. This compares to 8.46 million b/d a year ago. Total domestic gasoline supply increased from 204.7 million barrels to 208.3 million. Gasoline production decreased from 9.34 million barrels per day to 9.23 million barrels.

In addition to the conflict in the Middle East, pump prices are also impacted by the normal seasonal factors. 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.

This year, though, pump prices are elevated for this time of year due to all of the global geopolitical tensions.

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 more expensive to produce and 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. 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.

The U.S. price of crude oil (West Texas Intermediate) is back above $100 to start this week. The conflicts in the Middle East, the war between Russia and Ukraine, and market concerns about global oil supplies continue to impact prices. Crude prices fell sharply earlier this summer as markets reacted to the peace deal between the U.S. and Iran. WTI dipped below $70 for several days in late June and early July, the lowest prices since the start of the conflict. Crude prices rose again as the conflict escalated again.

WTI is trading around $103 today, compared to $94 a week ago and $58 a year ago. In 2025, West Texas Intermediate ranged between $80.04 (January 15) and $57.46 (October 16) per barrel. In 2024, WTI 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 determined in international markets, based on global supply and demand, and are impacted by economic news as well as geopolitical events around the world including the conflict with Iran and disruptions in the Strait of Hormuz and the Red Sea, economic uncertainty, the situation in Venezuela, tensions over Greenland, sanctions on Iran’s oil, the conflict between Israel and Hamas, and the war between Russia and Ukraine. Russia is a top global oil producer, behind the U.S. and Saudi Arabia.

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 52% of what we pay for in a gallon of gasoline is for the price of crude oil, 22% is refining, 15% distribution and marketing, and 12% are taxes, according to the U.S. Energy Information Administration.

Meanwhile, crude oil production in the U.S. remains at or near record highs. The U.S. Energy Information Administration (EIA) reports that crude production in his country is at 13.68 million barrels per day for the week ending October 9. Production has been at 13.5 million barrels per day many times since October 2024. 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.

Quick stats

Oregon is one of 42 states and the District of Columbia with lower gas prices this week. North Carolina (-22 cents) has the largest week-over-week decline in the nation. Ohio (+16 cents) has the largest week-over-week increase in the nation.

California ($6.15) has the most expensive gas in the nation for the 14th week in a row and is the only state with an average at or above $6 per gallon. The cheapest gas in the nation is in North Carolina ($3.59)

There are three states with averages in the $5-range, 32 states and the District of Columbia with averages at or above $4 a gallon, and 14 states with averages in the $3-range. No state has an average in the $2 range this week.

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.

Oregon is one of 47 states and the District of Columbia with lower prices now than a month ago. The national average is 20 cents less and the Oregon average is 17 cents less than a month ago. North Carolina (-55 cents) has the largest month-over-month decline. Hawaii (+10 cents) has the largest month-over-month increase.

All 50 states and the District of Columbia have higher prices now than a year ago. The national average is $1.24 more, while the Oregon average is 91 cents more than one year ago. Oregon has the second-smallest year-over-year increase in the nation. Michigan (+$1.67) has the largest year-over-year jump in the nation. North Carolina (+84 cents) has the smallest.

Diesel

For the week, the national average adds four cents to $6.32 a gallon. The national average has backed away from its all-time record high of $6.53 set on September 22. The previous record high for diesel was $5.816 set on June 19, 2022.

The Oregon average slips one cent to $6.74 per gallon. The Oregon average has declined from its all-time record high of $6.88 set on September 23. The previous record high was $6.47 set on July 3, 2022.

A year ago the national average for diesel was $3.62 and the Oregon average was $4.40.

Diesel prices are lower in 18 states, including Oregon, this week. Colorado (+25 cents) has the largest week-over-week increase. North Carolina (-16 cents) has the largest week-over-week decline.

Source: AAA

Portland Local News