Texas gasoline prices spike as OPEC+ announces cut in oil production
Only a week ago, the Texas weekly gas price average dropped for the 15th week in a row.
That was until OPEC+ on Wednesday announced plans to make production cuts of as much as 2 million barrels per day.
“The news is already putting upward pressure on crude oil futures as well as retail pump prices, even in places like Texas, where gas prices have been dropping steadily over the past few weeks,” said AAA Texas spokesperson Daniel Armbruster.
Overnight, the average in Fort Worth went up from $3.02 to $3.12 per gallon for regular unleaded gas. And the statewide average went up from $3.10 to $3.15 per gallon, according to AAA Texas.
The U.S. imports more than 1 million barrels per day of crude from OPEC nations. Most of that comes from Saudi Arabia, which imports 550,000 barrels a day. The move will likely cause a global supply and demand ripple effect, Armbruster says, at a time when global supply and demand levels are already tight.
Nationally, the gas average increased overnight by 26 cents. The national gas price average has already been on the rise over the last week because at least six California refineries are undergoing maintenance, and there is limited pipeline supply to the West Coast from locations east of the Rockies. To offset surging prices, California officials will allow the sale of less expensive winter blend gasoline a month ahead of schedule. It is unknown how much of an impact this will have on prices, Armbruster said. Meanwhile, gas prices in the upper Midwest have increased after a deadly refinery fire on Sept. 20 in Toledo, Ohio, which closed the plant.
