Gas prices are on the rise again, up a dime over the last week and AAA says expect the price at the pump continue to decline. AAA fuel analyst Don Redman says we normally see prices raise at this time of the year as refineries switch from a winter grade of gasoline to summer.
“So this is the period where we you start seeing the squeeze in terms of supply versus demand, which starts picking up…and we are seeing all of that,” said Redman.
Redman says the announcement by Saudi Arabi and other major oil producers they’ll cut production by 1.1 million barrels per day from May will push gas prices even higher. He says oil prices jumped six-percent Monday morning.
“OPEC has openly announced they like crude oil at 80-to-100 dollars per barrel and that’s exactly were they want to push it right now,” said Redman.
The current price for a gallon of regular gasoline is $3.18. Redman says expect prices to rise about 30-cents over the next couple of months.
“We’ve advised our members to budget about $3.50 a gallon by the time we got into June, we are about 14-cents from a month ago,” said Redman
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