NASHVILLE, Tenn. (WKRN) – The average price of gas in Tennessee increased by 14 cents within the past two days, according to AAA. It came after OPEC plus announced it’s slashing oil production by two million barrels a day to drive up oil prices.
The group of oil-producing nations led by Russia and Saudi Arabia planned the move for November, just in time for midterm elections in the United States.
“There’s not really a risk to OPEC,” said Patrick DeHaan, Petroleum Analyst for Gas Buddy. “Certainly, I mean, from a political standpoint, the U.S. is not happy with OPEC’s decision to cut production. The President having some fairly poignant words, that this is unwarranted, indeed, as global oil inventories remain rather low. I certainly don’t see why OPEC may be cutting production. Although there is a part of me that certainly thinks part of this could be political as the midterms are just a month away.”
According to AAA, Tennessee’s average for a gallon of regular is up to $3.36, which is a 14 cent increase in two days. Memphis’ average is $3.38 for regular; Nashville’s average is $3.41. DeHaan explained how the impact on gas prices would differ based on where you live in the U.S.
“Some areas because of the refinery issues are set to fall because of improvement with those issues. Those areas, the Great Lakes in the west coast will not see a direct increase in price, because they have so much improvement coming because of the refinery situation. So in those areas, prices were going to fall but now they’re not going to fall on a fall as far as expected because of OPEC’s decision,” said DeHaan. “Whereas areas like the south including Tennessee, the East Coast, the Northeast and the Rockies, they will see more of a direct impact of the pump over the next week or two.”