Wednesday, May 29, 2024
HomeAg NewsOPEC Could Derail Fuel Price Declines

OPEC Could Derail Fuel Price Declines

With the summer driving season now underway, the nation’s average price of gasoline declined 3.9 cents from a week ago to $3.51 per gallon. The national average diesel price fell 3.4 cents last week and is $3.88 per gallon.

However, GasBuddy’s Patrick De Haan warns OPEC could change the course of fuel prices this summer. OPEC+ agreed Sunday to additional production cuts, while Saudi Arabia is going above and beyond and cutting July production. As a result, De Haan says, “oil prices are likely to see upward pressure as global supplies, which have remained tight, promise to become even tighter as a result.”

Oil prices could rally this week and push fuel prices higher, but De Haan says any rise in average prices should be fairly small. U.S. retail gasoline demand saw a 2.3 percent fall last week, with the most common U.S. gas price at $3.39 per gallon.

- Advertisment -

Latest Stories