Why are gas prices going up? More pain at the pump as OPEC cuts oil production by 2 million barrels
Hold onto your wallet: Gas prices may be going up again.
The OPEC+ alliance of oil exporting countries said Wednesday it will cut oil production by 2 million barrels a day, a move that will likely raise prices at the pump.
The group said the decision was based on the “uncertainty that surrounds the global economic and oil market outlooks.”
Oil is trading well below its summer peaks because of fears that major global economies such as the U.S. or Europe will sink into recession due to high inflation, rising interest rates and energy uncertainty over Russia’s war in Ukraine.
With an uptick in demand and refinery issues, U.S. gas prices were already trending higher in recent weeks. The average price of a gallon of gas Wednesday was $3.83.
Save money on gas: How to save money at the pump as gas prices rise
GasBuddy’s head of petroleum analysis, Patrick De Haan, predicted gas prices will go up on the East Coast, in the South and Northeast and in the Rockies.
The West Coast, Great Lakes and Plains may see prices drop as refinery problems are addressed, according to De Haan. “They just won’t go as low as they might have otherwise,” he tweeted.
A spike in gas prices could hammer an already struggling economy. It could also have political fallout with midterm elections just weeks away.
Falling gas prices helped elevate President Joe Biden’s approval rating and the Democratic Party as it faces a challenging election season.
Gas prices rose earlier this year after Russia’s invasion of Ukraine. The average price of gas hit a record high of $5.02 a gallon in June. Prices declined from July through mid-September.
Contributing: Associated Press
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