AAA Texas: Gas prices climb following OPEC+ move to cut global crude supplies

The statewide gas price average in Texas is $3.22 for a gallon of regular unleaded fuel. This is according to the AAA Texas Weekend Gas Watch. That price is six cents more per gallon than it was on this day last week and is 56 cents less per gallon. This is in comparison to this day last year.

Of the major metropolitan areas surveyed in Texas, drivers in El Paso are paying the most on average at $3.38 per gallon while drivers in San Angelo are paying the least at $2.99 per gallon. The national average price for a gallon of regular unleaded is $3.55, which is six cents more when compared to this day last week and 61 cents less than the price per gallon at this same time last year.

A surprise move earlier this week by the Organization of the Petroleum Exporting Countries and other major oil producers, including Russia, known as OPEC+ caused a ripple effect that is leading to higher gas prices. OPEC+ announced plans to cut output to global crude oil markets by one million barrels per day through 2023. The move, which is set to begin in a month, caused crude oil prices to spike back above $80 per barrel.

Retailers’ Response

Retailers quickly responded by increasing pump prices in Texas and across the United States. In addition to the announcement by OPEC+, demand for gasoline in Texas and many parts of the U.S. are already at summertime levels as the weather warms and more people travel for leisure.

“Rising crude oil prices are sending retail gas prices back up to levels not seen since early November,” said AAA Texas spokesperson Daniel Armbruster. “Crude accounts for 55 to 60 percent of the cost of each gallon of gas. If crude oil prices remain higher, drivers could be looking at another expensive summer when it comes to filling up. However, if concerns of an economic slowdown in the U.S. persist, price increases may be limited.”

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Source: Your Basin

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