Gasoline prices are expected to rise ahead of the summer driving season, following a surprise production cut by OPEC members. The cuts, which could be up to 1.15 million barrels per day, may cause gas prices to rise by at least 26 cents, according to Phil Flynn, a senior analyst at Price Futures Group and FOX Business contributor. This could mean that gasoline prices climb above $4 per gallon as summer nears. US oil prices have already surged above $80 per barrel on the news.
Flynn also noted that prices will increase between 10 and 15 cents anyway when refineries change the gasoline blend during the summer driving season. However, he suggests that motorists should prepare for the worst and hope for the best.
This comes as consumers are already experiencing high inflation, which rose 6% year over year in February. Additionally, hurricane season is less than 60 days away, which could disrupt oil production and drive up the price of gas even more, according to Lipow Oil Associates President Andy Lipow.
Oil production rose to nearly 12.5 million barrels per day in January, which is the highest level since March 2020, according to data from the Energy Information Administration.