INDIANAPOLIS, Ind. (NETWORK INDIANA): OPEC’s decision to cut oil production Sunday means you’ll likely be seeing an increase at the gas pump soon.
“Whether it’s Indianapolis, the state of Indiana, the Midwest or the U.S., it’s going to affect everyone. Because Indiana’s prices cycle, then that could exacerbate the cycle sooner rather than later,” said Patrick DeHaan, head of petroleum analysis for GasBuddy.
Since Indiana was already due to have a price increase this week anyway, even before the OPEC cuts were announced, DeHaan recommends you wait to fill up.
“Maybe by midweek, we could see an increase. It might be Wednesday or Thursday,” said DeHaan.
DeHaan says these OPEC cuts, however, are “not good news.”
“U.S. oil inventories are already down 126 million barrels from where they were a year ago. It’s only a matter of time before the decline in production will start putting more upward pressure on prices,” said DeHaan.
DeHaan says the part of the cuts from OPEC that is most surprising to him.
“By and large, the members agreed to revise and lower their production numbers in 2024. The only immediate cut is a voluntary cut from Saudi Arabia. That was surprising. Saudi Arabia is cutting 1 million barrels a day in July and they can extend that into August. That’s a pretty hefty cut for a country that relies on higher oil prices,” said DeHaan.
As of Monday afternoon, GasBuddy says the average price for gas across Indiana is $3.48.
