UPDATE: OPEC and its oil-producing allies opted not to increase production beyond the already planned 400,000 barrels per day for next month. AAA Texas said the decision leaves little opportunity to ease supply tightness in the near term.
AUSTIN (WBAP/KLIF News) – OPEC and its oil-producing allies are meeting Wednesday to decide how much oil to release to offset skyrocketing gas prices amid Russia’s invasion of Ukraine.
The attack sent the price of crude oil past $100 per barrel.
The meeting comes on the heels on the International Energy Agency’s decision this week to release 60 million barrels of oil from their strategic reserves.
According to AAA Texas, the price of a gallon regular unleaded jumped 13 cents this week to $3.39 in the Dallas/Fort Worth area.
The agency’s Daniel Armbruster doesn’t expect the IEA or OPEC’s pending decision to move the needle much on the current trend in Texas.
“Either you’re going to have to have a fall in demand, meaning the price gets to a point where consumers say ‘I am going to have to change my behavior’ or we have to see more supply come into the market,” he said.
Armbruster added that the amount of oil industry leaders plan on releasing isn’t enough.
“Two million barrels a day is a drop in the bucket compared to what we consume on a global level if we want to see gas prices come down,” he said.
Oil industry analysts expect OPEC to remain on the fringes, allowing prices to fluctuate based on developments in the Ukrainian conflict and the world’s response to the situation.
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