AAA-The Auto Club Group reported in its weekly fuel price statement that the upward trend continued at the gas pump last week, as the national average rose 4 cents in the past seven days. Pump prices also shot up 4 cents in Florida, 6 cents in Georgia, and 5 cents in Tennessee.
The average price per gallon in Georgia is now $2.19; a year ago Georgia motorists were paying $1.95 a gallon for gas.
“Gas prices are moving in concert with crude, which has pushed higher since OPEC announced plans to cut production in January," said Mark Jenkins, spokesman, AAA – The Auto Club Group. "After rising for nearly two weeks, gas prices leveled-off on Sunday. However, the upward trend could resume this week, depending on how the oil market responds to news of a new production-cut agreement from a number of non-OPEC oil-producing countries."
On Saturday, representatives from a number of non-OPEC oil-producing countries pledged to collectively cut 600,000 barrels a day of crude output next year. According to OPIS, the cuts include a pledge for about 300,000 fewer barrels a day from Russia, where output was expected to rise in 2017. Pledges to cut also came from Mexico, Azerbaijan, Bahrain, Oman, and several other small producers. Together with OPEC's pledge to cut 1.2 million barrels a day, representatives hope to restore balance to the oil market, which has been oversupplied since 2014. That year, oil prices plunged below $90 a barrel and haven't returned since.
The price of crude rose again last week, logging a new 2016 record. Monday's closing price of $51.79 was the highest daily settlement since July 2015. How the oil market responds to the latest production-cut-pledge will continue to steer prices at the pump.
