OPEC+ nations to reduce production, oil prices surge
Today’s national average price for a gallon of gasoline is $3.50, up 6 cents since last Monday. One year ago, the price was $4.20. The New York State average is $3.47, up 5 cents since last Monday. A year ago, the NYS average was $4.30. AAA Western and Central New York (AAA WCNY) reports the following averages:
- Batavia – $3.46 (up 10 cents from last Monday)
- Buffalo – $3.47 (up 13 cents from last Monday)
- Rochester – $3.51 (up 11 cents from last Monday)
Oil prices soared overnight on the announcement Sunday that the Organization of the Petroleum Exporting Countries Plus or OPEC+ will cut the production of oil by over 1 million barrels a day beginning in May. The surprise move is expected to last for the remainder of the year. This morning oil prices range from $80 to $84 per barrel – up over $4 from yesterday – and up from $69 to $75 per barrel one week ago. Oil is the key ingredient in the production of gasoline. In addition, new data from the Energy Information Administration (EIA) shows gas demand increased from 8.96 million to 9.15 million barrels per day last week as nicer weather has more drivers on the road nationwide. Meanwhile, total domestic gasoline stocks decreased by 2.9 million bbl to 226.7 million bbl. All of this is sending prices up at the pump.
As gas prices rise, diesel prices continue to fall. The national average price for a gallon of diesel is $4.20, down 4 cents from a week ago. Here in New York, the current average for diesel is $4.85, down 4 cents from last week.
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