01:12 PM PDT on Wednesday, October 6, 2004

By ANTONIA GIEDWOYN, kgw.com Staff

Gas prices in the Northwest continue rising while experts point to natural disasters and civil unrest as some of the reasons for the price hike.

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Portland's average per gallon price this week moved above the $2 mark, and motorists in Medford-Ashland and Eugene-Springfield are paying an average $2.11 for regular, according to AAA. While Washington state’s average is $2.04, the average price in Vancouver remains under $2 at about $1.98.

By Wednesday, the national average price for a gallon of regular unleaded climbed to $1.94, an increase of more than three cents since last week. In Oregon, the average price went up by four and a half cents.

Oregon's average price still ranks 5th highest in the nation. Hawaii's average is up to $2.36, and California's rose to $2.23. In Nevada, the average price is $2.16, in Idaho, it's $1.96, and in Washington, it's $2.04. South Carolina has the lowest average price at $1.81 per gallon.

With crude oil now topping $51 per barrel, any likelihood of declining gas prices seems remote, at least for now, said AAA officials.

The series of hurricanes that hit the southeast and the Gulf of Mexico last month continue to slow oil production and distribution, officials said, estimating that the U.S is still losing almost 500,000 barrels of oil per day because oil rigs in the Gulf are not back in production yet.

Added to the tight supply picture is civil unrest in Nigeria, according to AAA. Rebel leaders are threatening to attack Nigeria’s oil production infrastructure. In addition, speculation by energy traders, who fear terrorists will attack Iraqi oil wells, refineries or shipping ports before the December elections, adds to the higher barrel prices, AAA said.

"We also need to keep an eye on the weather," said AAA Oregon Public Affairs Director Elliott Eki. "Severe regional winter weather could impact oil inventories if the demand for home heating fuel rises sharply."