OPEC production cuts, Russian price cap could disrupt falling gas prices | TribLIVE.com
TribLive Logo
| Back | Text Size:
https://staging.triblive.com/local/regional/opec-production-cuts-russian-price-cap-could-disrupt-falling-gas-prices/

OPEC production cuts, Russian price cap could disrupt falling gas prices

Brian C. Rittmeyer
| Tuesday, December 6, 2022 6:01 a.m.
Metro Creative

The national average price of gasoline has dropped for four straight weeks to its lowest level since January, Patrick De Haan, head of petroleum analysis at price-tracking service GasBuddy, said Monday.

“Every state has again seen average gasoline prices drop in the last week, and it remains very possible the national average could fall under $3 per gallon by Christmas,” De Haan said.

But the recent plunge in gas prices might be affected by the results of Sunday’s meeting of OPEC+, a group of 23 oil-producing nations that includes Saudi Arabia and Russia, according to AAA. The group decided to maintain output cuts of 2 million barrels per day, about 2% of world demand, to boost the global price of oil.

“Gas prices are dropping sharply,” AAA spokesperson Andrew Gross said. “But with oil being the main ingredient in gasoline, OPEC+’s move could slow this decline.”

De Haan said a price cap on Russian oil kicking in could cause concerns.

“Retaliation is possible, and while OPEC+ upheld production cuts from last month, they could always cut more production,” he said. “For now, however, we’ll likely see another week of declines at the pump in nearly all states.”

According to AAA, the national average was about $3.40 on Monday. That’s about 14 cents per gallon less than a week ago and 39 cents less than a month ago, but about 4 cents more than a year ago.

GasBuddy put the national average slightly lower, at $3.36 per gallon.

Pennsylvania’s statewide average, about $3.88 according to AAA, keeps the state in the company of West Coast states, Alaska and Hawaii with the highest average prices. States with the highest averages range from Utah at $3.79 to Hawaii at $5.18.

Pennsylvania’s average is about 9 cents per gallon less than a week ago and about 18 cents less than a month ago, but about 30 cents higher than a year ago, according to AAA.

Averages by county range from $3.69 to $4.08, with higher averages largely in central and northern tier counties. Averages in the Pittsburgh area, according to AAA:

• Allegheny: $3.89

• Armstrong: $3.83

• Beaver: $3.84

• Butler: $3.83

• Washington: $3.88

• Westmoreland: $3.92

According to GasBuddy, the average in the Pittsburgh area is $3.88. That’s about 12 cents per gallon less than a month ago but 34 cents higher than a year ago.

Prices in the Pittsburgh area range from $3.39 to $4.19, a difference of 80 cents per gallon, according to GasBuddy.

Neighboring areas and their prices as reported by GasBuddy:

• Akron: $3.13, down about 18 cents per gallon from last week.

• Cleveland: $3.17, down about 19 cents per gallon from last week.

• West Virginia: $3.35, down about 11 cents per gallon from last week.

The national average price of diesel fell about 14 cents in the past week to $5.06 per gallon, according to GasBuddy. De Haan said diesel prices could fall under $5 per gallon this week and soon after fall to their lowest level since March.


Copyright ©2025— Trib Total Media, LLC (TribLIVE.com)