Gas prices are about to go up, again
OPEC+, a team of oil-exporting countries, made the unified decision to decrease the production of oil based on “uncertain market outlooks.” After this decision, American gas prices rose nearly 3 cents per gallon at $3.83 - this is the largest price hike for gas prices in almost four months. It’s been 99 days of declines, so this increase was felt across the country. The bad news? More price increases are coming.
Besides the OPEC decision, increases have all been happening because of an unusual amount of oil refineries being shut down for maintenance and repairs. According to the global head of energy analysis for OPIS, Tom Kloza, almost 18% of the country’s refining capacity is offline for this reason. This tight market means gas prices will remain high, and likely continue growing. Some industry officials are hoping California’s summer regulation of blended gasoline being lifted a month early may ease the price at the pump. California’s average is $5.52 per gallon.
Oil prices fluctuated within a tight range on Friday, as investors weighed mixed signals from the world's top oil consumers, China and the U.S. Brent crude slipped 13 cents to $83.75 per barrel, while West Texas Intermediate (WTI) fell 4 cents to $79.22.