BAKERSFIELD, Calif. (KGET) — As high as gas prices are, they could get even higher.
After, OPEC+ announced Wednesday that it would cut oil production by 2 million barrels daily. The move is the biggest cut in production since the start of the pandemic. The cut threatens to increase gasoline prices just weeks before the U.S. midterm elections.
However, Associate Professor of Economics Dr. Richard Gearhart shares that won’t be all that is affected.
“Oil is going to increase, which means gas and other fuel prices are going to increase, which means food prices are going to increase, and we’re just going to see continued inflationary pressures,” said Gearhart.
Researchers expect global oil prices to rise from about $93 to $100 per barrel, with U.S. benchmark prices rising from $88 to $92.
As the nation sees steady gas prices, Gearhart suggests California residents could see it the worst.
“I would expect gas prices to remain in the $6 range with all of the moving parts and pieces, which is not welcomed news in an environment when prices for everything have been increasing,” said Gearhart.
Yet, local oil producers are going to benefit from this change.
“Local producers might actually expand oil production, take advantage, and fill this gap,” said Gearhart.
However, for residents, Gearhart shares the result will be felt by those at gas pumps in the coming weeks.
According to AAA, the national average for a gallon of gas is $3.831. For Bakersfield, the average is $6.317.