OPEC decision pumps up gas prices, analyst says
JONESBORO, Ark. (KAIT) - OPEC’s decision to not raise production fueled a significant jump at the pump, according to one gas analyst.
According to GasBuddy.com’s weekly survey of Arkansas stations, regular unleaded rose 7.5 cents in the last week to an average price of $2.91 a gallon.
Arkansas motorists are paying 8.4 cents more per gallon than they were a month ago, and $1.03/gallon more than last year.
The national average rose 5.2 cents in the last week to $3.25.
Patrick De Haan, head of petroleum analysis for GasBuddy, blamed the sudden jump on OPEC’s decision not to raise production more than it had agreed to in July.
“The OPEC decision caused an immediate reaction in oil prices,” De Haan said in Monday’s news release. “Amidst what is turning into a global energy crunch, motorists are now spending over $400 million more on gasoline every single day than they were just a year ago.”
Oil prices last week advanced to their highest levels in seven years, he added.
“The problems continue to relate to a surge in demand as the global economy recovers, combined with deep cuts to production from early in the pandemic,” De Haan concluded. “If Americans can’t slow their appetite for fuels, we’ve got no place for prices to go but up.”
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