Gas prices rising, OPEC cuts add to seasonal increases - The Atlanta Journal Constitution

Gas prices rising, OPEC cuts add to seasonal increases

Gas prices usually start climbing in late winter and spring as American drivers take to the highways for vacations and refineries re-tool to make summer blends.

It looks to be a steeper price hike this year.

Crude oil is the biggest factor in pump prices. So the decision to cut oil production by OPEC — led by Saudi Arabia and Russia — will mean tighter supplies and higher global prices. Anticipating reductions, speculators have already started bidding up wholesale prices, which will ripple through the system to the pump price.

A year ago, prices were soaring, mostly because of the Russian invasion of Ukraine. To soften the blow, President Biden released huge quantities of oil from the nation’s strategic reserve, while in Georgia, Gov. Brian Kemp suspended the state’s gas tax.

Drivers may not get the same relief this year.

Kemp reinstated the tax over the winter. Biden has been criticized for not replenishing the reserve when prices were low.

Atlanta average, gallon of gas

Now*: $3.28

Week ago: $3.18

Month ago: $3.11

Year ago: $3.90

Past year’s high: $4.54

Past year’s low: $2.70

Oil consumption and flow

U.S. consumption of crude oil: 20.28 million barrels per day

Global consumption: 100.8 million barrels per day

Average U.S. exports of oil: 9.58 million barrels per day

Average U.S. imports of oil: 8.32 million barrels per day

Estimated national oil production

United States: 11.6 million barrels per day

Russia: 10.5 million barrels per day

Saudi Arabia: 10.2 million barrels per day

Canada: 4.7 million barrels per day

Iraq: 4.3 million barrels per day

China: 4.0 million barrels per day

United Arab Emirates: 3.0 million barrels per day

Brazil: 2.9 million barrels per day

Kuwait: 2.6 million barrels per day

Iran: 2.5 million barrels per day

Why U.S. prices are rising

Inventories are falling

Spring driving has increased demand

OPEC has cut production by about 3.66 million barrels a day

Speculators are pricing in anticipated shortages

*As of Wednesday morning, April 5, 2023

Source: Gas Buddy, Energy Information Administration, International Energy Agency, World Population Review, American Petroleum Institute

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