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After four months of steady declines, gas prices in Massachusetts are ticking back up

BOSTON — After seeing gas prices come down for the last four months, that trend could be reversing.

Oil-producing countries in OPEC voted to reduce oil production in November but the drop in supply will likely lead to higher gas prices.

Prices have quietly and steadily dropped, and many people have enjoyed seeing the numbers tick down. However, there is a change in that trend, and Wednesday’s announcement from OPEC about cutting oil production could move prices up faster.

According to AAA, the average for a gallon of unleaded in Massachusetts is $3.51. That’s up two cents from Wednesday. Last month, drivers were paying forty cents more at $3.91 a gallon.

So why are prices going back up? They were already on the rise because demand is up and there have been issues with refineries. But on Wednesday, OPEC announced it will cut oil production by two million barrels a day, the largest cut since the pandemic started. It said the decision was based on the uncertainty that surrounds the global economic and oil market outlooks.

“Everything has a price,” said OPEC Secretary General Haitham Al-Ghais. “Energy security has a price as well.”

This will likely have a ripple effect—retailers will be paying more for shipping and could pass the cost on to us—the consumer.

“When higher oil prices are putting pressure on inflation, the federal reserve really has to keep rate hikes going,” said Elsa Iignos, the managing director of Fx Strategy.

Just four months ago, gas prices hit an all-time high. AAA reported the average price for a gallon of gas was $5.05 a gallon on June 12th in Massachusetts. Since then, prices have dropped by about $1.50 a gallon. However, those days of decline could be over.

Prices are starting to go back up, and now OPEC announced yesterday it would start cutting oil production by two million barrels a day starting in November. The US stopped exporting oil from Russia shortly after the war in Ukraine began and other European countries have joined the boycott, urging more oil production elsewhere to ease gas prices. But with both Saudi Arabia and Russia agreeing to cut production a month before the mid-term elections, some claim the timing isn’t a coincidence.

“There’s only so much control any American president has over gas prices, but voters blame the people in charge as gas prices go higher,” said Margaret Talev, a policy polling and politics manager at Axios.

“Vladimir Putin and MBS are essentially trying to interfere in our election through these actions, using OPEC,” said Rep. Pramila Jayapal, (D) Washington, who is also the chair of the Congressional Progressive Caucus.

Despite this, some energy analysts point out the global oil market could still be oversupplied by the end of the year, so the production cuts might not hit your wallet as hard.

This is a developing story. Check back for updates as more information becomes available.

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