The average price of a gallon of gas in Louisiana is just over two dollars, up nine cents over last week and up nearly 20 cents from last month.
AAA spokesperson Don Redman said overall gas sales are still down and this price is a reflection of the low level of production.
“It certainly is a reflection of the cutback in production from oil-producing countries as well as refineries that we have seen all through the lockdown,” said Redman.
OPEC recently agreed to further reduce production to ensure prices did not collapse again as the world economy endures the second major wave of the pandemic.
Redman says the increase in gas prices is good news for Louisiana’s oil sector which has been battered by months of low prices.
“We are seeing the price of crude, which at one point during the summer had dipped below 30 dollars a barrel, is now back over 50 dollars a barrel,” said Redman.
At one point in spring, the price of oil futures had fallen into negative territories.
Redman does not expect we will see another major jump in price like we did this week, nor does he expect the price of gas to fall back too far under two dollars a gallon again.
“If we see a reverse in gasoline prices, a significant reverse, it is probably an indication that the economy is just in the toilet,” said Redman.
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