OPEC production cut will not soon impact gas prices, analyst says

An OPEC deal to cut oil production will not have an immediate impact on gasoline prices, which have fallen for a seventh straight week as the covid-19 pandemic and stay-at-home orders crush demand, according to an industry analyst.

“Establishing a floor on ultra-low oil prices will hopefully keep U.S. oil production online instead of bankrupting producers,” said Patrick DeHaan, head of petroleum analysis for GasBuddy. “Going back to gas prices, I expect prices to continue moderating for now, as gasoline demand appears to remain near 50-year lows.”

In the Pittsburgh area, gas prices fell 4.7 cents per gallon in the past week to an average of $2.19, according to GasBuddy’s survey of 731 stations. That’s 30.9 cents per gallon less than it was a month ago — and 85.9 cents per gallon under the price a year ago.

Prices in the Pittsburgh area range from a low of $1.59 per gallon up to $2.79, a difference of $1.20. Statewide, the price range is $1.59 to $2.89, a difference of $1.30 per gallon, according to GasBuddy.

The national average has fallen 7.2 cents per gallon to an average of $1.83. That’s 42.3 cents per gallon less than a month ago, and about $1 less than a year ago.

Neighboring areas and their current gas prices:

• Akron — $1.41, down 8.6 cents per gallon from last week;.

• Cleveland — $1.48, down 6.3 cents per gallon from last week;

• West Virginia — $1.82, down 3.7 cents per gallon from last week.