OPEC will begin cutting oil production by two million barrels a day beginning in November. The White House believes the decision was made to stop falling global oil prices. Gas prices were already on the rise due to refinery shutdowns and Hurricane Ian.
AAA leaders said the national average jumped eight cents a gallon in the last week, averaging around $3.86. In Mississippi, the average cost of regular gas has jumped five cents since Wednesday, and is now at $3.15 a gallon.
According to AAA, OPEC’s decrease in production could cause the national average to rise to $5 a gallon, but officials believes Mississippi will not be largely impacted.
“Crude oil is such a significant part, and the price of gasoline playing a role of almost 60 percent of the cost of gasoline is dependent on the price of crude. So, it’s going to depend on just how high crude may go. We’ve already seen it increase by close to 2 percent just in the past couple of days. I think now, probably, be wise to start budgeting about $3.50 a gallon. That may be an extremely high forecast, but I just want to prepare consumers for potential sticker price shock at the pump this fall,” said AAA Spokesperson Don Redman.
Crude oil is currently around $88 a barrel. AAA suspects the price will rise to more than $100 a barrel by the end of the year.