OPEC production cuts could push oil prices higher in January.
The national average price of gas has dropped to $2.30, which is six cents less than last week, 24 cents less than one month ago and 16 cents less than one year ago.
AAA reported that nearly 20% (nine) of U.S. states are posting gas prices below $2 per gallon. Demand for gas is expected to fall during January after a busy holiday travel season. What’s more, OPEC is set to begin production cuts on Jan. 1, anticipating that the shift in global supply will push oil prices higher.
“All eyes are on OPEC to kick off the year,” said Jeanette Casselano, AAA spokesperson. “Many are waiting to see if they stick to their promise to cut crude production by 1.2-million b/d and if the proposed cuts will be enough to restore balance to the market.”
Ohio (-15 cents) and Indiana (-15 cents) saw the largest weekly price changes at the pump, while Missouri ($1.87) has the lowest gas price average in the nation. Hawaii ($3.41) and California ($3.38) continue to have the most expensive gas.