Answer Desk: With OPEC’s decision to cut oil production, what does this mean for you? – Eyewitness News 3

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(WFSB) – Could gas and heating oil prices rise?

The group that regulates the amount of oil to put on the world market cuts its expenses.

OPEC will cut oil supply by 2%.

So what does this mean for you?

According to OPEC, we are going to see two million fewer barrels of oil per day in the world.

While that sounds like a lot, a local economics professor said that doesn’t mean you need to start panicking.

At the New Haven terminal, oil flows in and out daily.

Even with OPEC’s decision to cut production, terminal workers said they weren’t worried and had enough to fill every truck.

John Gray has been driving oil trucks for almost 15 years. Gray says he’s had to spend more time at the terminal lately.

“It’s just long lines. There aren’t too many people who have fuel oil, so it’s limited as to where you can charge,” Gray said.

OPEC’s decision will cut oil production by 2%, or 2 million barrels per day.

Patrick Gourley, an associate professor of economics at the University of New Haven, said the numbers look worse than they are.

“It’s not nothing, but it’s also not enough to drive prices up,” Gourley said.

Gourley said it depends on supply and demand, and winter can increase demand.

“You definitely have some seasonality. To some extent, if it’s a normal winter that the price should already be priced into the market, but if you have a really cold winter, say some kind of problem with the production in Saudi Arabia, that might restrict more supply. If people start to decide they want to drive more, that can increase demand. Any of these changes would increase the price more than expected,” Gourley said.

Although we don’t have much control over what the world decides, Gourley said we can still take care of our home when it comes to oil bills.

“Don’t heat up the neighborhood. Make sure your doors are closed, put the plastic filament you can throw at the windows, properly insulate your house and make sure you don’t heat your house if it’s empty,” Gourley said.

The White House said Wednesday that President Joe Biden would continue to assess whether to release more local oil from the strategic reserve in an effort to lower prices.

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