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OPEC + trading boosts oil production, but what does that mean for pump prices?

Gasoline prices are rising, as are summer temperatures.

Despite the new announcement, these prices can’t cool down before the end of the season Deal with more oil production One expert states that it comes from OPEC and its allies.

“I don’t expect gasoline prices to drop significantly between now and Labor Day,” said AAA spokeswoman Jeanette McGee. She said summer gas demand from people ready to meet friends and family at this stage of the pandemic is still too strong to change the dynamics of current prices.

Earlier this month, the US Energy Information Administration counted a record demand for 10 million barrels of gasoline per day. AAA said..

As of Monday, Americans were paying $ 3.17 per gallon According to AAA, on average with a pump. This is a 13-cent jump from Memorial Day Weekend and a 98-cent jump from a year ago.

Earlier this month, OPEC countries and their allies were unable to reach an agreement on crude oil production after implementing production cuts early in the pandemic. By Sunday, they had reached an agreement to increase monthly crude oil production by 400,000 barrels from August to the end of 2022.

The United States is neither a member of OPEC nor Canada, the largest source of foreign crude oil in the United States. Last year, OPEC countries accounted for 14% of crude oil imports and Canada accounted for 61% of total crude oil imports. US Energy Information Administration.

But in the global oil market, OPEC’s decisions can still affect American drivers. Observer says.

Crude oil prices by the start of the trading day on Monday Began to fall into the news About trading. However, the barrel price needs to continue to fall before the driver is full, and McGee does not expect it in the near future.

Meanwhile, Americans have come to expect — But definitely don’t like it — Pay higher prices for all kinds of goods and costs. According to government statistics, consumer prices rose 5.4% from June 2020 to June 2021.

OPEC + production contracts “only respond to seasonal increases in demand and do not offset them. Decrease in oil inventories Energy industry expert Phil Flynn, Senior Market Analyst at PRICE Futures Group, said:

In Flynn’s view, OPEC “is more interested in supporting prices than paying attention and feeding the global economy.”

Historically, after a worker’s day when people quit traveling and return to work or school routines, gas will be cheaper, McGee said.

She said it was too early to say what price cuts would happen this fall.

OPEC + trading boosts oil production, but what does that mean for pump prices?

Source link OPEC + trading boosts oil production, but what does that mean for pump prices?

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