Drivers are set to pay more for gas this year

The price of regular unleaded gasoline this year will climb to its highest annual average since 2014, thanks in large part to crude-oil production cuts led by the Organization of the Petroleum Exporting Countries.

“The OPEC decision to cut production…and to recently extend the cut into 2018 is behind much of the pain at the [gasoline] pump,” says Patrick DeHaan, head of petroleum analysis at gas-price tracker GasBuddy, which made the price prediction.

The national average price for gasoline in 2017 increased year-over-year for the first time since 2012, averaging $2.39 a gallon, according to GasBuddy, which expects it to climb to $2.57 this year. On Friday afternoon, it stood at $2.50 a gallon.

OPEC members, along with other major oil producers, including Russia, agreed to reduce oil production by about 1.8 million barrels from peak October 2016 levels in an effort to rebalance the market. High compliance with the pact, which was implemented at the start of 2017 and runs through 2018, contributed to last year’s price rally for crude oil, oil stocks, and related mutual and exchange-traded funds.

https://www.marketwatch.com/story/drivers-are-set-to-pay-more-for-gas-this-year-2018-01-08