New Orleans gasoline prices rise 6 cents per gallon following OPEC production decision, and it may just be the start

NEW ORLEANS (WVUE) – The average price of a gallon of gasoline in New Orleans has risen 6 cents over the past week, an increase that experts attribute to a recent decision by OPEC countries not to not increase production in the face of growing global demand for fuel.

According to the weekly survey by analysis site GasBuddy, the cheapest gasoline in New Orleans was billed Monday, Oct. 11 at $ 2.65 per gallon and the average price in the city was $ 2.97 per gallon. . This city-wide average price was 5.9 cents more than last week, 5.2 cents more than a month ago and $ 1.12 more than a year ago .

Baton Rouge saw its average price per gallon of gasoline climb 10.6 cents more than a week ago, to $ 2.95. Statewide, the average gallon of gasoline in Louisiana rose 8 cents more than last week, to $ 2.98

“Last week, oil prices hit their highest level in seven years,” topping the $ 80 a barrel mark, said Patrick De Haan, chief oil analyst at GasBuddy. “The country’s gas prices have also been pushed to their highest since 2014, all on OPEC’s decision not to increase production more than it already agreed in July.”

In the United States, the average price per gallon of gasoline rose 5.2 cents over the past week, to reach $ 3.25.

Global demand for fuel is increasing as the global economy recovers from its slump at the start of the coronavirus pandemic. But the 13 oil-producing countries that make up the Organization of the Petroleum Exporting Countries (OPEC) cartel announced last week that they would not be restoring higher production levels anytime soon.

“OPEC’s decision caused an immediate reaction in oil prices,” De Haan said. “Amid what is turning into a global energy crisis, motorists are now spending more than $ 400 million more on gasoline every day than they were a year ago.

“If Americans can’t curb their appetite for fuels, we have no other place for prices to go up. ”

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