October 4, 2022
Brace yourself. Gas prices could shoot back up in the coming days and weeks. And everything hinges on a meeting that’s happening tomorrow.
OPEC+ which is the group of top oil producing countries led by Saudi Arabia is meeting tomorrow to discuss whether or not to cut oil production. OPEC+ doesn’t like that oil prices have been dropping in recent months, that means less money for them.
When they cut oil production that means there’s less oil available on the market and therefore supply drops out making prices more expensive.
And the cut they’re considering tomorrow will really hurt – because OPEC+ is talking about cutting more than one million barrels a day. That would be the largest cut to oil production since the beginning of the pandemic.
You may have noticed in the last few weeks gas prices have been creeping up. There are a lot of reasons for that including planned and unplanned maintenance at u-s oil refineries. But if OPEC+ cuts production too, that would hit our supply… causing gas prices to shooting up.
