GasBuddy: OPEC could cut production soon

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Image by IADE-Michoko from Pixabay

What you will pay at the gas pump in the future could be determined by what OPEC decides to do in the coming days, says GasBuddy.

“They have suggested that they are ready to cut oil production as early as their next meeting which is just around the corner. It is something that could happen at a moment’s notice really,” said Patrick DeHaan, head of petroleum analysis for GasBuddy.

If they cut production, that means less supply, which ultimately means you pay more.

“That’s the worry. If OPEC does make a move to do that, that could eventually send prices up,” said DeHaan.

Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman said OPEC wants to cut prices because the oil futures market has fallen into “a self-perpetuating vicious circle of very thin liquidity and extreme volatility.” OPEC feels that cutting production would help make the market less volatile.

DeHaan says if you fill up with diesel, prices are going to keep hovering around $5 per gallon.

“I’d fill up sooner rather than later because I think diesel will see a lot of pressure for quite some time moving forward. I don’t expect it to get much better anytime soon,” said DeHaan.

If you use regular gasoline, though, DeHaan recommends you wait a little bit.

“Even if there is a price cycle, it probably will be next week. Even if that happens, I don’t see prices in Indiana to go above $3.99 like they did on the latest increase,” said DeHaan.

3 COMMENTS

  1. That means the price at the pump will go up for us. Our country was energy independent when President Trump was in office. POTUS JOE has distorted lower US. energy cost due to his extreme climate change views. We still have to get the oil from the Ships coming far away.

    If you’re a Washington D.C. millionaire career politician, the price of gas isn’t important. It certainly affects most of us working Americans. Make sure you vote on November 8th please

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