MORGANTOWN, W.Va. — West Virginians should anticipate higher gas prices following oil-producing nations announcing steps to reduce their output starting next month.
OPEC+ nations said Wednesday they will reduce oil production by 2 million barrels a day starting in November. The decision triggered a price increase of $10 per barrel.
Patrick De Haan, the senior petroleum analyst for GasBuddy.com, said Thursday on “MetroNews Talkline” consumers could see prices increase by 30 cents a gallon.
“Prices in West Virginia are likely to edge up and really the entire east coast,” he stated.
The Biden administration, which tried to encourage an increase in oil production as Russia’s invasion of Ukraine drives energy prices, said Wednesday it will release 10 million barrels from the nation’s strategic petroleum reserve.
“Overall, oil inventories globally remain extremely tight, so to take 2% off the top doesn’t seem like a lot, but it is,” De Haan said. “It’s the last breath you need until the gets vastly tight.”
De Haan also noted he believed OPEC+’s decision was political in nature, noting Saudi Arabia’s recent grudge against the United States.
“I think the president made some mistakes in his early days in the Oval Office. Going after the oil industry, going after calling Saudi Arabia and calling them a pariah,” he said. “There are consequences to the word ‘chosen,’ and I think that’s coming home to roost.”
Gov. Jim Justice blamed the Biden administration for the looming change. The governor said during Thursday’s coronavirus briefing the nation needs to take steps to increase domestic energy output.