OPEC production cut behind 3rd straight week of rising gas prices, analyst says

Average gasoline prices in the Pittsburgh area have increased by about 10 cents per gallon in the past week, while the national average has gone up about 14 cents, according to price tracking service GasBuddy.

The average in the Pittsburgh area is $3.99, according to GasBuddy’s survey of 731 stations. That’s 1.7 cents per gallon more than a month ago and 63.5 cents more than a year ago.

The national average is $3.92, GasBuddy reported. That’s 22.5 cents per gallon more than a month ago and 67 cents more than a year ago.

“With OPEC+ deciding to cut oil production by 2 million barrels a day, we’ve seen oil prices surge 20%, which is the primary factor in the national average rising for the third straight week,” said Patrick De Haan, head of petroleum analysis at GasBuddy.

Refinery snags that caused prices to surge in the West and Great Lakes are improving, and prices in those regions will come down despite OPEC’s decision, because the drop in wholesale prices is offsetting the increase caused by the production cut, De Haan said.

“But where gas prices didn’t jump because of refinery issues, they will rise a total of 10 to 30 cents due to oil’s rise, and some areas are certainly seeing the jump already,” he said. “For now, I don’t expect much improvement in prices for most of the country, with California and the Great Lakes as the exception, with downdrafts likely in the days and weeks ahead.”

AAA was reporting Pennsylvania’s average at $3.89 per gallon, up 12 cents from a week ago but about 5 cents less than a month ago. It’s about 47 cents per gallon more from a year ago, when the state average was $3.41 per gallon.

Average prices across Pennsylvania range from $3.76 per gallon to about $4.05, with the higher prices seen in the western half of the state and the lower prices in the east, AAA reported Monday.

County averages in the Pittsburgh area, as reported by AAA:

• Allegheny: $4

• Armstrong: $4.01

• Beaver: $4

• Butler: $3.99

• Washington: $4

• Westmoreland: $3.98

GasBuddy reported prices in the Pittsburgh area ranging from $3.29 per gallon to $4.99, a difference of $1.70 per gallon. Prices statewide ranged from $3.29 to $6.18, a difference of $2.89 per gallon.

Neighboring areas and their current gas prices as reported by GasBuddy:

• Akron: $3.92, up 28.5 cents from last week.

• Cleveland: $3.91, up 20.7 cents from last week.

• West Virginia: $3.51, up 12.1 cents from last week.