Gas prices in Carolinas increase after OPEC announces oil cuts

Gas prices in the Carolinas are getting higher after OPEC recently announced that crude output would be cut next month by 2 million barrels per day, according to AAA Carolinas.

>>LINK: Check prices at gas stations here.

The price of oil has increased to over $90 per barrel for the first time in several weeks.

“When the cost of oil is high, that typically means more expensive gas prices,” said Tiffany Wright, a spokesperson for AAA Carolinas. “There’s also been an increase in demand as more motorists have been fueling up.”

North Carolina’s gas price average is $3.50 per gallon, a 20-cent increase on the week, AAA stated Monday. That is seven cents more than a month ago and 44 cents more than a year ago.

South Carolina’s average gas price is $3.36 per gallon, a 10-cent increase on the week. This is three cents more than a month ago and 35 cents more than a year ago.

ALSO READ: OPEC+ makes big oil cut to boost prices; pump costs may rise

The national average of $3.91 per gallon, 19 cents higher than a month ago and 65 cents more than a year ago.

According to new data from the Energy Information Administration (EIA), gas demand increased nationally last week, as total domestic gasoline stocks decreased significantly.

>>Watch Channel 9′s LIVE STREAM wherever you are, at this link

High gasoline demand and a tight supply have led to higher prices at the pump across the country.

“Although crude prices have surged, the pricing impact may be short-lived as demand concerns continue to weigh on the market,” AAA Carolinas said in a news release. “For this week, crude prices could reverse course if the market continues to see indicators of weakening demand, which could see crude prices decline due to falling demand.”

VIDEO: How are gas prices determined? What you need to know