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Local gas prices fall � for now But OPEC may cut production this month By Chris Bristol First, the good news: Gas prices are coming down. The bad news: not by much, and maybe not for long. Since late October, when regular unleaded gasoline peaked at $1.82 a gallon, gas prices in Oregon have fallen 21 cents on average to about $1.61, according to the American Automobile Association. That might not sound like much, but a motorist with a 15-gallon gas tank would save more than $3 per fill-up. Highest average per-gallon gas prices among the states 1. Hawaii $2.02 2. Alaska $1.68 3. California $1.66 4. Nevada $1.65 5. Connecticut $1.62 6. Oregon $1.61 National average $1.44 Source: American Automobile Association The average price a year ago was $1.43. In fact, the current national average is $1.44 a gallon. Seventeen cents over the national average means Oregonians pay the sixth-highest gas prices in the country. "At least we�re not Hawaii," where gas costs over $2 a gallon, said AAA spokesman Elliot Eki. Locally, the lowest gas prices are believed to be at Costco, where members could fill up Friday for $1.46 a gallon. Arco was cheap, too, at $1.47. Gas stations near the freeway and in other high-traffic areas tend to charge more, at least $1.61 at the south Medford interchange. Reduced demand during the winter and the slowing economy inflated inventories, which in turn contributed to the lower prices, analysts say. At the same time, crude oil prices have fallen to $26 a barrel, the lowest in almost a year. But savings could be fleeting, because OPEC, the Organization of the Petroleum Exporting Countries, is threatening a cut in production. The consortium meets Jan. 17, and Saudi Arabia, the world�s largest oil producer, will be expected to wield considerable influence. "The OPEC nations are saying, �Why should we produce so much crude oil for you guys when prices are down?� " Eki said. "So now the analysts are saying we need to wait and see what happens on the 17th." The stubbornly high prices in the Northwest have prompted outcries of price-fixing. In November, federal regulators confirmed Oregon Sen. Ron Wyden�s claims that oil companies practice "redlining" and "zone pricing" in Oregon. A story in the Sunday Oregonian cited evidence that BP Amoco "systematically" jacked up West Coast oil prices by exporting Alaskan crude to Asia for less than it could have sold it to U.S. refiners. Oil companies have denied the allegations. They blame higher prices on OPEC cutbacks, refinery fires, pipeline disruptions and even Oregon�s unique ban on self-service. AAA�s Eki said nobody but the oil companies really knows for sure why prices are the way they are. "It�s one of these things," Eki said. "It doesn�t matter how you ask the question or who you ask, you�re gonna get such a runaround on the answers ..." Mail Tribune Home | Ottaway Newspapers, Inc. | Dow Jones & Co., Inc. | Privacy | Contact Us Copyright � 2000 Mail Tribune, Inc.