Here’s How High Gas Prices Could Go After OPEC Cut Oil Production
A big change in the international crude oil market could drive up gas prices for U.S. drivers — but probably only in some parts of the country.
Earlier this week, the Organization of Petroleum Exporting Countries (OPEC) announced it would cut crude production by 2 million barrels per day in an effort to prop up oil prices, which have dropped to less than $95 per barrel today from more than $120 per barrel at the beginning of June. The wholesale price of crude oil is the biggest factor that determines the retail price of gasoline at the pump.
Gas prices normally dip nationally during the winter months, due to lower demand and a shift to cheaper winter fuel blends. But GasBuddy head of petroleum analysis Patrick De Haan predicted Wednesday that the OPEC production cuts could soon cause a 15- to 30-cent spike in gas prices in certain places. Specifically, the East Coast, South, Northeast and the Rocky Mountain states could all potentially be hit with significant gas price hikes, De Haan said.
