Gas prices could climb this summer

  • Saudi Arabia will limit its oil supply to the global economy this summer
  • Less demand has recently kept gas prices down
  • Demand tends peak in late summer, potentially leading to rising costs

(NewsNation) — National average gas prices fell this week, but the savings may be short-lived, according to analysts who expect prices to climb as soon as mid-week.

Saudi Arabia says it will slash oil supply to the global economy by 1 million barrels per day starting in July, potentially driving up prices.

The cut in oil production supports the sagging cost of crude to balance earlier cuts in supply by the Organization of the Petroleum Exporting Countries. As of Monday, the national average cost of gas hovered around $3.55 per gallon.

“Over the next couple of weeks, we could see the national average going up a little bit, maybe three to six cents this week,” said Patrick DeHaan, a senior petroleum analyst for Gas Buddy. “Some states could see the average price go up five to 10, maybe even 15 cents over the next couple of weeks.”

That’s because retail gasoline prices are mainly affected by crude oil prices and the amount of gasoline available to meet demand, according to the U.S. Energy Information Administration.

According to DeHaan, the most significant changes could happen over the next few months. The OPEC production cut could further strain the United States’ Strategic Petroleum Reserve, he said.

“This may do so in a more significant way in the months ahead as OPEC continues to cut production,” DeHaan said.

Gas prices are currently down about $1.46/gallon since reaching an all-time high in June 2023, AAA data shows.

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