BEND, OR -- Retail gas prices across Oregon and across the nation continue to move higher. AAA-Oregon said Tuesday the statewide gas price jumped four cents in the past week to $3.21 a gallon, while the national average inched up a penny to $3.10 a gallon. Crude oil prices surged last week to a two-year high, and AAA-Oregon's Marie Dodds says that was due to a slightly weaker U.S. dollar, positive economic sentiment and increased demand.
"Crude has remained above $90 a barrel for several weeks, after spending much of the summer between $70 and $80 per barrel," Dodds added. "Several factors, including bitter cold weather in the northern hemisphere may make it difficult for crude prices to ease anytime soon."
Last week's shutdown of the Trans-Alaska Pipeline initially caused some jitters through the markets, but later received little attention as the line was back up and running by the weekend.
The latest forecast from the U.S. Department of Energy projects an average crude oil price of $93.42 in 2011, which would be a $14 per barrel increase from last year's average. The DOE forecast projects the national average gas price this year around $3.17 a gallon, with that figure peaking in July. The report does leave open the possibility that U.S. retail prices could spike this summer, with a 25% probability that prices could exceed $3.50 a gallon between June and September, and an 8 to 10 percent chance prices could exceed $4 a gallon in August through September.
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