Gas prices to rise after oil production cuts announced
TALLAHASSEE - Florida gas prices rose 10 cents last week and additional price hikes are likely to come, after Saudi Arabia unexpectedly announced plans to cut oil production, causing oil prices to rise overnight.
On Monday, the average price in the state for a gallon of regular was $3.47. That's almost 25 cents more than what it was a month ago, but substantially less than the $4.17 it was a year ago.
On Sunday, Saudi Arabia and other OPEC+ countries announced surprise plans to cut oil production by more than a million barrels per day, beginning in May. The cuts are reportedly an effort to prop up oil prices, which recently plummeted to 15-month lows due to fuel demand concerns created by the banking crisis.
Oil prices quickly shot up, following this announcement. The U.S. price of oil traded just above $80 a barrel, Sunday evening. A benchmark that hasn't been breached since early March. That's an increase of nearly $5 or 6.5% more than the closing price on Friday. That price hike alone is equivalent to a 13-cent jump at the pump.
The most expensive markets for gas were West Palm Beach, Port St. Lucie, and Naples. The cheapest gas prices were in Panama City, Pensacola, and Fort Walton Beach.