Gas Prices Rise As More Production Cuts Announced-December 12, 2016

Posted on Posted in Uncategorized

Gas and oil prices are continuing to rise as more countries agree to cut production.
Prices had risen for two week since OPEC nations agreed to cut their production by 1.2 million barrels a day starting next month. But just as they began to level off, non-OPEC oil-producing nations agreed on Saturday to cut their production by 600,000 barrels a day.
A spokesman for AAA said it still remains to be seen how the market reacts to that news, especially since prices are already rising.

The national average for a gallon of regular gas jumped 4 cents in the past week to $2.21, according to AAA’s weekly report. The average rose 3 cents to $2.21 in Florida and 6 cents to $2.18 in Georgia.

The increase in Jacksonville was smaller, up 1 cent to $2.15 in the past week.
According to GasBuddy.com, the cheapest gas in the Jacksonville area is in Nassau County, where 10 stations were charging an area low of $2.06 on Monday.
The oversupply and falling prices of the past year have affected not only oil companies, but countries such as Russia and Saudi Arabia, which depend on the oil for funding their government.
Oil fell from over $90 per barrel in early 2014 to as low as $40 earlier this year, briefly sending the average price of regular gasoline at the pump to under $2 for motorists in the United States.
Oil closed at $51.58 on Friday, up 6 percent since the OPEC production cut was announced, and on Monday, U.S. benchmark crude rose $1.33 a barrel, or 2.6 percent, to close at $52.83. Brent crude futures rose $1.36 to settle at $55.69, a 2.5 percent rise, after hitting a session peak of $57.89, the highest since July 2015.