OPEC decision sends gas prices shooting back up in Chattanooga

CHATTANOOGA (WDEF) – Gas prices shot up last week in Chattanooga by almost 8 cents a gallon.

The new average price is $1.93.

The national average went up 4.4 cents to $2.18 a gallon.

The experts say the cause is OPEC’s decision to squeeze production.

But will the move work?

“If I had a nickle for everytime OPEC said it was going to cut oil production, I could probably buy everyone free gas on Christmas,” said Patrick DeHaan, senior petroleum analyst for GasBuddy. “While OPEC signaled at its meeting in Vienna that it would cut crude oil production, it also created a committee to monitor the reduced production quotas- addressing the issue of cheating- an issue that has been pervasive for the organization. For now, oil markets have bid up oil prices in a fury believing the agreement, which comes in to force in January, is exactly what’s needed to balance supply and demand. I, however, believe this rally represents a balloon that’s filled with too much air and risks a correction (popping the balloon) that may be seen in due time.”

“But as I wait for the balloon to burst, the rally in oil prices will lead to higher gasoline prices in much of the country over the next couple of weeks as prices catch up to the feverish rise in oil prices. From the east to the west, average prices could rise 5-15 cents a gallon in the week ahead, so motorists should plan accordingly and expect in nearly all communities. OPEC seems to be taking the role of the Grinch this holiday season: the era of low oil prices may be over for now,” DeHaan said.

Prices may be going up, but you can still find $1.78 prices in Lookout Valley.

The Murphy USA, BP and Exxon at the Cummings Highway exit all have that price, but you better act fast.

The cheapest gallons in Cleveland and Athens are up to $1.93.

Dalton prices have been slow to rise, with one $1.89 price at the Mapco at Chattanooga Road near Shugart.

And Ringgold has several $1.84 prices.

Categories: Local News

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