UNDATED (WKZO-AM) — You may want to fill up soon. OPEC has agreed to cut production for the first time in years and it’s already had an impact on the price of crude oil across the globe.
It’s being called a win for the participating OPEC nations, and a win for oil firms in the U.S. because it may revive pumping and exploration here.
The only losers may be consumers.
GasBuddy.com’s Patrick Dehaan says higher prices are in our future.
The reduction in production will put about 1% less crude on the market on a daily basis, about 1.2-million barrels, but that’s enough to begin cutting into the glut of supply currently on the market.
AAA of Michigan has issued a Gas Price Hike Alert, saying “analysts believe the OPEC agreement could boost crude prices by $5 or more, which would directly lead to increases of at least 13 cents at the pump.” They say retail prices had already been on the rise because of the anticipation that an OPEC deal would be reached. The Auto Club says average prices statewide have increase 8-cents in the last day. DeHaan says prices could reach as high as in the $2.50 range, but that is dependent on whether or not crude oil prices continue to rally.
