Idaho gas prices see a decline

SANDPOINT — Idaho gas prices are continuing the slide even though the national average has leveled off since the beginning of the year, according to AAA Idaho.

Gasoline prices in the Gem State have dropped 18 cents since Jan. 1. The U.S. and Idaho average prices are 13 cents apart as supply continues to meet and exceed the current level of demand.

“Nationwide, gasoline stocks are at their highest level on record at 259 million barrels, partly due to severe winter weather in the Midwest and on the East Coast that has prevented some of the usual driving activity,” says Matthew Conde, public affairs director for AAA Idaho. “Barring an unforeseen change, pump prices should hold steady or even drop a little more throughout the week.”

The average U.S. price on Tuesday was $2.26, which is 2 cents less than a month ago and 33 cents less than a year ago. In Idaho, the average price was $2.39, which is 19 cents less than a month ago and 18 cents less than a year ago, AAA Idaho reports.

Idaho currently ranks 14th in the country for the most expensive gas prices, but usually occupies a ranking between seven and nine.

The West Texas Intermediate benchmark for crude oil on Tuesday was $52 per barrel, about $6 higher than the beginning of the year. OPEC’s 1.2 million barrel-per-day production cuts and political instability in Venezuela could be applying upward pressure on oil prices, according to AAA Idaho.

Meanwhile, some of the recent political and economic upheaval has been offset by increased U.S. production, Conde said. A couple of weeks ago, the United States set a new record, pumping 11.9 million barrels of crude oil per day. Last week, the U.S. also added ten oil rigs, bringing the total to 862 — 103 more than a year ago.

If oil prices continue to climb, domestic production will likely expand, and that could keep some market forces in check for the short term. AAA and other groups will keep a close eye on market activity in the coming weeks.

In the Rockies region, gas prices fell last week in every state.

“Idahoans may be a little jealous of Montana’s and Colorado’s gas prices ($2.25 and $2.06 per gallon), but we have it better than the drivers on the West Coast,” Conde said. “In Washington, Oregon, and California, they’re paying $2.91, $2.80, and $3.24 per gallon today.”

Keith Kinnaird can be reached by email at kkinnaird@bonnercountydailybee.com and follow him on Twitter @KeithDailyBee.