Feeling pumped

Dalton Gardens and Hayden have the lowest gas prices in the state at an average of $2.24 per gallon.

Coeur d'Alene is close behind at $2.26, which is also the U.S. national average. Post Falls is just a few cents more at $2.29 and Rathdrum is at $2.32.

As the national average has steadied, Idaho continues to see this wallet-pleasing trend with an average of $2.39.

"Right now, North Idaho gas prices are considerably cheaper than the state average, with many motorists saving a dime or more per gallon when compared with drivers in other parts of the state," AAA Idaho public affairs director Matthew Conde said in an email Tuesday. "The region’s prices have also dropped slightly faster than the state average — 20 cents versus 18 cents — to begin the year."

Six months ago, gasoline on average cost Idahoans $3.11 per gallon. Coeur d'Alene and Post Falls both had an average price of $3.10 and across the nation the average was $2.59. A year ago, Idaho was at $2.58, just a penny less than the national average.

As of Tuesday, the U.S. average gas price was 2 cents less than it was a month ago and 33 cents less than at this time in 2018. Idaho is normally about the eighth-most expensive state in the country for fuel, but currently holds the No. 14 spot with an average that is 19 cents less than it was a month ago and 18 cents less than a year ago, according to AAA.

"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 unusual driving activity," Conde stated in a press release AAA Idaho sent out Tuesday. "Barring an unforeseen change, pump prices should hold steady or even drop a little more throughout the week."

AAA reports that the West Texas Intermediate benchmark for crude oil is $52 per barrel, about $6 more than at the beginning of the year. The Organization of the Petroleum Exporting Countries (OPEC)'s 1.2 million barrels per day production cuts and political instability in Venezuela could be applying upward pressure on oil prices.

U.S. production set a new record a couple weeks ago, pumping 11.9 million barrels of crude oil per day. Last week, the U.S. added 10 oil rigs, bringing the total to 862, which is 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," the release states. "AAA and other groups will keep a close eye on market activity in the coming weeks."

Gas prices fell last week in every Rocky Mountain state last week: 5 cents in Utah, 4 cents in Wyoming and 3 cents in Idaho, Montana and Colorado. Idaho, Utah and Wyoming prices are within 1 cent of each other.

The highest-paying states are Hawaii, $3.25; California, $3.24; Washington, $2.91.

"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 the press release.

Conde said oil from Canada and North Dakoda is refined in Montana and shipped to Idaho. Gas stocks in the region remain at 7.2 billion barrels this week. Conde compared the situation to a bucket with a hole in the bottom.

"Right now, the amount of gasoline that’s coming into the bucket (supply) is enough to replace the amount that’s going out through the hole (demand)," he said. "That’s good, because it helps keep prices from going up. If the hole in the bucket gets bigger, or if less fuel gets poured in, we’ll be headed for higher prices. We would typically expect that hole to get bigger when spring arrives, and as extra demand starts to drain the bucket faster."

At this time, there are no major supply disruptions, but overall, the global market continues to believe there is too much crude oil out there. That's putting some downward pressure on oil prices, he said, and in turn, gas prices. Record-high gasoline stocks and low seasonal demand are also major contributing factors.

"Barring the unexpected, gas prices should remain stable or even dip slightly over the next week or two," Conde said. "The return of spring weather could start depleting available fuel inventories. If that happens, prices could quickly change course, so a lot depends on how long the available supply is able to outpace the demand. In the meantime, Idahoans will enjoy the savings."