AAA Alabama says OPEC cut to oil production will force gas prices to increase

Gas prices are expected to increase with OPEC cutting oil production.
Gas prices are expected to increase with OPEC cutting oil production.(WBRC)
Published: Oct. 5, 2022 at 8:50 PM CDT
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BIRMINGHAM, Ala. (WBRC) - Gas prices have been falling since summer, but we may soon be paying more at the pump again.

OPEC, the international oil cartel, announced Wednesday they will be cutting oil production next month. Organization of the Petroleum Exporting Countries said they are cutting production by two million barrels per day starting November 1.

Clay Ingram with AAA Alabama said the main reason for this is to maximize their profits. When gas prices started coming down the last few months, big oil-producing nations lost money.

Ingram said prices are already increasing because the decision was announced, but when production actually halts, costs will rise even more.

“I don’t think it’s going to send prices back up above what we saw in June when we hit $4.63 a gallon,” said Ingram. “Here in Alabama, I don’t think we’re going to see anything that dramatic or that drastic. We need to do what we can to soften our demand here in the U.S. In other words, use as little as possible over the next few months.”

He also highly suggests price shopping or buying gas where it’s the cheapest. He says that creates competition and can bring down gas prices.

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