OPEC Agrees Crude Oil Production Cuts; Gas Prices Are Already Up 3 Cents In FL

By on November 30, 2016 in WNDB News

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Florida – Gas prices in Florida jumped several cents overnight in anticipation of a new Organization of Petroleum Exporting Countries(OPEC) deal, and now that they’ve agreed to cut crude oil production, prices could continue to rise another 10 to 15 cents.

In the Daytona Beach area the price for a gallon of regular self serve unleaded is now $2.12 on average. Yesterday that gallon of gas cost $2.09 and a week ago that same gallon of gas was $2.06.

OPEC, an organization of more than a dozen oil producing countries, announced that it would cut crude oil production by 1.2 million barrels a day to 32.5 million a day, beginning in January. That production cut is aimed at draining a global glut that led to lower gas prices over the past 2 years.

Analysts say this new OPEC agreement could raise crude oil prices by $5 or more, which could lead to an increase of at least 13 cents per gallon at the pump. “This is not necessarily a benefit for motorists,” said Mark Jenkins, Spokesman for AAA, “but it’s certainly a benefit for oil companies.”

So far this week the average price for a gallon of regular self serve unleaded has gone up 3 cents in FL. And, according to Jenkins, “now that the deal is official, there is potential for prices to move even higher, based on the rate that oil prices climb.”

Copyright Southern Stone Communications 2016.

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