Gas prices expected to creep back up after OPEC announced plans to cut oil production
NORTH TEXAS (CBSNewsTexas.com) – Following OPEC's latest announcement to cut oil production, gas prices are expected to creep back up.
Analysts say with OPEC's surprise decision to cut just over 1 million barrels per day from May until the end of the year, you should expect to see prices at the pump go up anywhere from 5 cents to 15 cents per gallon for regular gas within the next two weeks.
In a Tweet, Governor Greg Abbott said Texas might counter OPEC's decision to cut production with a 1-million-barrel production increase.
"Texas is centered and positioned to lead," Texas Oil & Gas Association President Todd Staples said. "We truly are the energy capital of the world when you look at the technology and investment and the know-how."
Staples also says inflation, labor and infrastructure challenges and current policies can hinder growth.
"The legislature is meeting right now and there are policies that would promote new growth and new opportunities that the legislature will hopefully take a look at," he said.
TXOGA supports:
- SB1017 and HB 2374 - focused on protecting energy choice
- HB5 - which aims to attract major investments and jobs in our communities
Meanwhile, fuel demand is not slowing down. AAA says it's back above 9 million barrels per day, which is usually not seen until the busy summer travel months.
If you have travel plans this summer, expect to pay even more at the pump. Analysts say the nationwide the average price for regular gas is likely to be around $4 a gallon.