OPEC Decision Will Lead To Higher Gas Prices In Montana, Analyst Says
Today, OPEC announced that they decided to cut oil production. Gasbuddy.com’s Petroleum Analyst Patrick DeHaan explains how that decision could impact gas prices in Montana.
“Eventually here in the weeks ahead, motorists will notice higher gas prices,” said DeHann. “We could be talking about a 5 to 15 cent increase over the next one to two weeks or so. Also, considering the state of Montana is in the Rockies, it is certainly an advantage to any oil producers in the oil industry in the state as well as crude oil prices skyrocket about 10 percent.”
According to DeHann, OPEC made this decision in an effort to sure up oil prices and close the gap between supply and demand.
“In the last two years there has been a dramatic imbalance in supply and demand and prices have been subdued because of that,” DeHann said. “OPEC countries have been looking to sure up the price of oil. The way that they are doing that is to balance supply and demand more closely. That will have an impact on oil prices that will be felt at the pump in the form of higher gas prices.”
DeHann says motorists should see higher prices, but he doesn’t expect the price increase to be record breaking.