Following Thursday’s meeting at the Organization of the Petroleum Exporting Countries, there does not appear to be a significant increase in oil production, according to a report by travel and navigation app GasBuddy. The report predicts the national gasoline average will drop to $ 3 a gallon by Memorial Day as OPEC production cuts remain stable.
“Significant cuts in oil production in 2020 will generally be prolonged, with only Russia and Kazakhstan granting small exemptions to increase oil production by 130,000 barrels per day and 20,000 barrels per day, respectively,” said Patrick DeHaan, head of petroleum analysis at GasBuddy. DeHaan said in response that crude oil prices have reached new highs, with a barrel of West Texas Intermediate crude nearing $ 65 a barrel, the highest level since 2019.
State-level, four of nine Kansas crude oil blends saw an increase of $ 2.55 from the previous week, including Central Kansas Sweet ($ 53.91 / bbl), Eastern Kansas Common ( $ 50.56 / bbl), Northwest Kansas Sweet ($ 51.81 / bbl), and Southwestern Kansas Sweet ($ 52.31 / bbl). Kansas Common rose $ 2.53 to $ 51.77 / bbl while Kansas Crude and Southwest Kansas Crude jumped $ 2.50 to $ 59.29 and $ 52.93 / bbl, respectively. Eastern Kansas and south-central Kansas crude fell 25 cents to $ 47.75 and $ 52.25 / barrel respectively.
The oil price jumps have not gone unnoticed at gas stations across the region. In Barton County and the neighboring counties of Pawnee, Stafford, Ellsworth and Russell, the average price of a gallon of regular unleaded is $ 2.55. Rice County costs an average of 2 cents less at $ 2.53.
Over the past week, Kansas motorists saw their lowest pump price of $ 1.99 at Garnett, while $ 3.04 was reported as the most expensive, 4 cents more than the national average forecast by GasBuddy for May.
“The last time the national average hit the $ 3 / gal threshold was over six years ago,” DeHaan said, noting that in 2018, the national average jumped to $ 3 to 2 , $ 97.
DeHaan attributes much of GasBuddy’s forecast of a national average of $ 3 to OPEC’s delay in increasing production to meet rising global demand. “As vaccines have spread from country to country, demand for oil has rebounded noticeably,” he said. DeHaan added that OPEC has cut 10 million barrels per day of oil production, which remains largely the case to this day as OPEC has yet to respond in kind to the rebound in global demand.