Oklahoma Gas Prices Rise As Oil Producers Announce Slash In Production

The average gas price in Oklahoma has increased by nearly 10 cents over the past week, coinciding with the announcement of a large cut in oil production by major producers.

The average price for a gallon of regular gas in the state was $3.557 on Friday, according to AAA. A week ago, the average was $3.466.

On Wednesday, OPEC+ (Organization of the Petroleum Exporting Countries) announced it will cut oil production by two million barrels per day starting in November.

Steve Agee, a professor of economics and dean emeritus at Oklahoma City University's Meinders School of Business, said two million barrels per day equals to two percent of the global consumption.

"We consume about 100 million barrels of oil a day in the world, and in the U.S., we consume almost 20 million barrels a day," said Agee. "So we're kind of gluttons for energy consumption in the United States. We consume about one-fifth of the world's energy with about five or six percent of the world's population. So this cut of two million barrels is going to negatively impact prices, obviously. I mean, we're going to see price increases, diesel, probably jet fuel."

The cut in oil production is the largest since the start of the pandemic.

"This decision kind of, I think, caught some of the diplomats in Washington off guard by it," said Agee. 

In Oklahoma City on Friday, the prices News 9 saw were lower than the state average, hovering just below $3.40. While it's unknown how much the state will be affected by the decision of OPEC+, the global impact could last a while.

"I think it will last longer than a couple of months," said Agee. "So this cut of two million barrels, it will take time for it to kind of work its way through the economy. And I think what OPEC wants to do - their principal objective is to raise prices so they get more revenue."