How will OPEC's surprise oil cut impact gas prices in California?
LOS ANGELES (KABC) -- Oil prices jumped 6% overnight, it was announced Tuesday, and the average price for a gallon of gas jumped 2 cents locally just a couple of days after major oil-producing countries led by Saudi Arabia announced surprise cuts totaling up to 1.15 million barrels per day from May until the end of the year.
In the U.S. and in California, it's raising concern that gas prices could rise.
Right now, the average price of regular gas in California is around $4.63, well over a dollar more than the national average, according to the U.S. Energy Information Administration.
But gas analysts warn it could jump after OPEC's move to cut oil production.
"There are some experts that believe that we could see the national average increase 8 to 12 cents in the coming weeks and months due to the OPEC decision," said AAA spokesperson Doug Shupe. "However, we really don't know what's going to play out in California. We do know we are already paying higher prices than the national average."
Analysts at GasBuddy predict drivers could see an increase of 5 to 10 cents a gallon. It's a double whammy as gas is already expected to increase during the summer travel season.
While boarding a plane Monday, President Joe Biden reacted to OPEC's announcement.
"It's not going to be as bad as you think," he said.
Earlier, White House National Security Council spokesman John Kirby expressed U.S. opposition to the move, saying, "We don't think that production cuts are advisable at this moment given market uncertainty, and we made that clear."
If you want to stretch your gas, experts say shop around, keep up with your vehicle's maintenance, lighten its load and keep tires properly inflated.
The Associated Press contributed to this report.
