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Illinois gas prices continue to rise

By FOX 32 News
Published  April 4, 2023 5:47pm CDT
Gas Prices
FOX 32 Chicago

Oil producers’ cuts could boost gasoline prices

Major oil-producing countries led by Saudi Arabia said they’re cutting supplies of crude — again. This time, the decision was a surprise and is underlining worries about where the global economy might be headed.

CHICAGO - Illinois gas prices are up 15 cents from a week ago — an unwelcome sight as inflation remains high.

Those numbers are expected to continue rising after a move by a group of oil producers overseas.

Drivers again are seeing a slow tick up at the gas pump after a surprise decision by OPEC to cut oil production by one million barrels per day, starting next month.

"It’s not going to be as bad as you think," President Joe Biden said.

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Back in October, OPEC members cut two million barrels of oil a day.

"If OPEC stands pat with this cut, keeping it along with the cut they made last year, we could be very short going into July, August, September," said Kevin Book of Clearview Energy Partners.

AAA shows the average price for a gallon of regular is now $3.50 — up 10 cents from a month ago but still far cheaper than this time last year.

The move also comes as Russia says it will extend its oil production cuts for the rest of the year, which will likely threaten inflation globally.

"We need to get American production back up to the levels of about 13 million barrels a day, which would put our destiny in our hands rather than be in the hands of regimes that are hostile to American interests," said Mike Sommers, President and CEO of American Petroleum Institute.

Saudi Arabia says the surprise cuts are a precautionary move to prevent barrel prices from slipping further for oil producers, but it comes at the risk of sending U.S. inflation higher.