GRAND RAPIDS, Mich. — It’s Tuesday, and we're discussing gas prices. A significant announcement came down from OPEC over the weekend: the organization has decided to increase oil production once again, starting in November. This decision will directly influence crude oil prices, prompting the question: What will it mean for gas prices?
I spoke with analysts at GasBuddy.com to get their insights.
“If OPEC+ doesn’t increase production, it could put some pressure on prices here in the U.S.," said GasBuddy analyst Matt McClain. "This wouldn’t be due to a lack of supply, but rather because the price of crude oil is being driven higher by demand."
However, because OPEC is opting to increase production, this could lead to a greater supply and likely lower crude oil prices, which may translate to lower gas prices at the pump. McClain noted that the pressure on Europe to purchase crude oil from sources outside of Russia could cause prices to jump again due to the ongoing conflict between Ukraine and Russia. Still, he hopes OPEC’s decision will help keep prices stable.
“The working theory at this point is that if OPEC+ continues to increase production, the changes will be minimal or very short-lived,” McClain said.
Across the region, prices have started to decline from last week's state average, which ranged between $3.15 and $3.20 per gallon. Prices are expected to continue decreasing as we approach the weekend. If you’re in Kalamazoo County, it might be best to wait until closer to the weekend to fill up.
For those in the Grand Rapids area, prices aren’t likely to drop much more between now and the weekend, so filling up now versus later won’t save you significantly. It’s also important to keep in mind that prices will likely cycle back up at the beginning of next week.
