New Orleans gasoline prices surge 6 cents higher per gallon on OPEC production decision, and that might only be the start
NEW ORLEANS (WVUE) - The average price of a gallon of gasoline in New Orleans has surged 6 cents higher over the past week, an increase experts attribute to a recent decision by OPEC nations not to increase production in the face of growing global fuel demand.
According to the weekly survey by the analyst website GasBuddy, the cheapest gas in New Orleans was priced Monday (Oct. 11) at $2.65 per gallon and the average price in the city was $2.97 per gallon. That citywide average price was 5.9 cents higher than last week, 5.2 cents higher than a month ago and $1.12 higher than one year ago.
Baton Rouge saw its average price for a gallon of gas soar 10.6 cents higher than a week ago, to $2.95. Statewide, the average gallon of gas in Louisiana rose 8 cents higher than last week, to $2.98
“Last week saw oil prices advance to their highest in seven years,” surpassing the $80 per barrel mark, GasBuddy’s head petroleum analyst Patrick De Haan said. “The nation’s gas prices were also pushed to their highest since 2014, all on OPEC’s decision not to raise production more than it already agreed to in July.”
Across the United States, the average price for a gallon of gasoline rose 5.2 cents over the past week, to $3.25.
Worldwide fuel demand is climbing as the global economy recovers from its plunge early in the coronavirus pandemic. But the 13 oil-producing nations that make up the OPEC cartel (Organization of the Petroleum Exporting Countries) announced last week they would not restore higher production levels anytime soon.
“The OPEC decision caused an immediate reaction in oil prices,” De Haan said. “Amidst what is turning into a global energy crunch, motorists are now spending over $400 million more on gasoline every single day than they were a year ago.
“If Americans can’t slow their appetite for fuels, we’ve got no place for prices to go but up.”
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