Gas prices have been in a fluctuating state since the beginning of this year, and while they have now returned to their almost normal prices, they could be facing another increase.
The Organization of Petroleum Exporting Companies, better known as OPEC, decided on Sep.5 that they, as well as allied countries such as Russia and Saudi Arabia, would be cutting the oil supply by 100,000 barrels beginning in October.
This comes a month after they had officially decided to increase oil production.
OPEC had recently been increasing production, but only to catch up from their losses during the early stages of the pandemic.
According to AP News, oil producers have been ignoring United States President Joe Biden’s call to increase oil production to reduce gas prices for consumers.
Biden had slightly aided the reduction in gas prices this past summer when he encouraged more companies to produce more oil in order to reduce the prices as ongoing inflation threatens to tilt undecided voters in the upcoming mid-term elections.
Now while gas prices are low at the moment compared to the prices in the summer, there could be a significant rise in the upcoming month.
Mark Jenkins, AAA spokesman, gave a statement during a briefing last week regarding the possible gas price increase.
“Pump prices are falling after sharp drops in the oil and gasoline futures markets last week,” Jenkins said in his weekly briefing. “If sustained, this downturn could enable the state average gas price to eventually slip into the $3.30s. However, oil prices were gaining strength Monday night, after OPEC and its allies announced plans to cut production in effort to stabilize falling energy prices.”
Gas prices in Tallahassee this week sit at an average of $3.54 a gallon. An hour west in the Panama City area the price per gallon is more than 10 cents less.
Next month, consumers could be seeing how significant 100,000 barrels are when prices increase — if in fact that happens.
OPEC and the allied countries could be holding future meetings to decide if they want to further reduce oil supplies or go with Biden’s suggestion of increasing to lessen the burden on consumers.