OPEC deal impacts Missouri gas prices

OPEC’s deal last week to slow oil production spurred an increase in Missouri and national gas prices, according to a GasBuddy.com official.

The Show-Me State’s average rose 8 cents during the past week to $1.97 per gallon, according to GasBuddy’s survey of 3,940 filling stations statewide. The U.S. average ticked up 4.4 cents to $2.18 per gallon. Missouri’s average yesterday was 3.7 cents higher than a month ago and 13.8 cents higher than a year ago. The national average rose 3.7 cents during the past month and 14.1 cents during the past year, according to a news release.

OPEC plans to cut production by 1.2 million barrels a day if non-OPEC countries like Russia cut a further 600,000 barrels a day.

“While OPEC signaled at its meeting in Vienna that it would cut crude oil production, it also created a committee to monitor the reduced production quotas - addressing the issue of cheating, an issue that has been pervasive for the organization. For now, oil markets have bid up oil prices in a fury believing the agreement, which comes into force in January, is exactly what's needed to balance supply and demand,” said Patrick DeHaan, senior petroleum analyst for GasBuddy, in the release. “I, however, believe this rally represents a balloon that's filled with too much air and risks a correction -popping the balloon - that may be seen in due time.

“But as I wait for the balloon to burst, the rally in oil prices will lead to higher gasoline prices in much of the country over the next couple of weeks as prices catch up to the feverish rise in oil prices.”

This morning, Missouri’s $1.97 per gallon average ranked the state fifth on GasBuddy’s list of the lowest prices in the nation. Arkansas was No. 1 with its $1.95 per gallon average, while Hawaii bottomed the list with a $2.83 per gallon average.

The lowest price of gas in Missouri this morning was $1.71 per gallon at a station in Desloge. The highest price was $2.89 per gallon at a Ladue station, according to MissouriGasPrices.com.

Springfield’s lowest price was $1.79 per gallon at three filling stations: Pilot Flying J, 4839 W. Chestnut Expressway; Cenex, 3901 W. Chestnut Expressway; and Casey’s, 4124 W. Chestnut Expressway.

West Texas Intermediate crude oil was trading at $52.04 per barrel as of 11:03 a.m., compared with a 52-week range of $34.55 to $53.72.

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