Gas prices on the rise after OPEC+ cuts oil production by 2 million barrels
PROVIDENCE, R.I. (WLNE) — There are growing concerns over whether gas prices will start rising again after the international oil cartel OPEC+ announced that its cutting oil production by 2 million barrels a day.
The group consists of oil-producing nations including Russia and Saudi Arabia.
OPEC’s cuts in production are also expected to drive-up hearing and holiday travel costs as well.
“Usually, we see this huge uptick in the summer where there is a lot more demand for gasoline, but it was kind of a quiet summer overall in terms of driving,” Diana Gugliotta, spokesperson for AAA Northeast, said. “So, we started seeing these prices come down as a result, but now we’re really in a pickle. It’s really more geo-political issues and contracts with other nations.”
“It likely means an impact at the pump of anywhere from $.10 to $.30 a gallon,” added Patrick DeHann, head of petroleum analysis at the fuel-price tracking service GasBuddy.
The national average price of gas raised to $3.87 on Thursday.
President Joe Biden said he’s now considering releasing at least 10 million barrels from the nation’s oil reserves next month.