As far as gas prices are concerned, November 4th is a crucial day. It is the time when OPEC (Organization of the Petroleum Exporting Countries) meets for the purpose of discussing the future of oil production.
The oil and gas industry and consumers are both in difficulties due to OPEC’s decision to reduce production three weeks ago.
“On November 4th, we’ll see if they retake that decision and potentially accelerate their timeline to increase production.
Since they didn’t do it in October, though, I don’t know why they would do it in November,” said Patrick DeHaan, chief of the petroleum analysis group at GasBuddy.
DeHaan believes the meeting will go the way he expects, after that he believes the prices to continue to increase.
“I think all signs point to prices remaining at or above today’s levels for the next month or two until this energy shortage is sorted out. They could go back up to $3.39 or maybe $3.45 or $3.49 as oil prices continue to push higher,” DeHaan explained.
So far this week, the price trends are downward, but DeHaan encourages you to keep your eyes open for a price cycle apparently later this week.
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“I don’t think the downward move is going to last long. We could see Indianapolis prices jump back up at some point this week,” said DeHaan.
In his view, price cycling refers to when stations neglect movements in oil and wholesale prices for approximately a two-week period at a time.
“Stations instead choose to undercut each other almost every day until they run out of margin. That’s when prices shoot back up,” DeHaan stated.