Tulsa gas prices spike 20 cents per gallon overnight

Gasoline prices at Tulsa-area convenience stores and service stations spiked 20 cents overnight Wednesday, the same day OPEC announced a big cut in oil production.

Prices at many Tulsa-area locations went to $3.59 per gallon Wednesday from $3.38 a day earlier.

Through spokeswoman Aisha Jefferson-Smith, Tulsa-based QuikTrip declined to comment on OPEC’s announcement that it will cut oil production by 2 million barrels a day.

Energy ministers cut production by a larger-than-expected 2 million barrels per day starting in November after gathering for their first face-to-face meeting at the Vienna headquarters of the Organization of the Petroleum Exporting Countries oil cartel since the start of the COVID -19 pandemics.

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The group said the decision was based on the “uncertainty that surrounds the global economic and oil market outlooks.” Saudi Energy Minister Abdulaziz bin Salman stressed the group’s stated role as a guardian of stable energy markets, The Associated Press reported.

On Monday, Patrick De Haan, head of petroleum analysis at GasBuddy, a fuel price-tracking service, predicted OPEC’s move.

“OPEC could decide to cut oil production by a million barrels as the global economy slows down, potentially creating a catalyst that could push gas prices up further,” he said then.

On Wednesday, De Haan said Energy Information Administration figures indicate that US crude oil inventories decreased in the past week by 1.4 million barrels to a total of 429.2 million barrels.

At 429.2 million barrels, inventories are 8.3 million barrels above last year (2%) and are about 3% below the five-year average for this time of year, he said.

Inventories in Cushing rose 0.3 million barrels to a total of 26.0 million barrels, De Haan said.

Benchmark US crude oil for November delivery rose $1.24 to $87.76 a barrel, and wholesale gasoline for November delivery fell 1 cent to $2.67 a gallon on Wednesday.

The OPEC+ alliance of oil-exporting countries on Wednesday will debate a potentially large cut in the amount of crude it ships to the global economy.

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