Russia, Saudi Arabia extend oil cuts, gas prices will rise

Julia Eisen – WMAL News | September 5, 2023

This week gas prices fell about a penny at $3.77/g nationally. However, the projected lower prices for the fall season may no longer be a reality after Russia and Saudi Arabia both announced they are withholding oil.

The Saudis announced Tuesday morning that they plan to prolong the one-million-barrels-per-day oil production cut until the end of the year. Additionally, Russia also pledged to reduce exports by 300,000 barrels-per-day until the end of December.

“The extension of the production cuts is likely to put upward pressure on gas prices down the road,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “Not necessarily immediately, so motorists don’t need to worry too much yet. But it likely will prevent prices as low as we had expected them to this fall.”

All of this comes in the middle of hurricane season where we could see increases in gas prices anyway. However, De Haan told WMAL Radio that in two weeks gas stations will switch to a winter blend of gas that will “provide some downward momentum.”

Washington D.C. still has a higher average gas price than the national average at $3.86/g.

Neighboring areas and their current gas prices:
Maryland- $3.60/g, down 12.3 cents per gallon from last week’s $3.72/g.
Baltimore- $3.55/g, down 14.7 cents per gallon from last week’s $3.69/g.
Hagerstown- $3.64/g, down 1.1 cents per gallon from last week’s $3.65/g.

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