Despite nationwide retail gas prices increasing steadily, following the news of the OPEC production crude oil cut agreement, Nevada state gas prices have continued to decrease in the past week, according to the latest AAA Fuel Gauge Report, a monthly survey of gas prices.
Nevada’s average price for regular gasoline, $2.40, is $0.13 down from a month ago. Of the Nevada cities surveyed by AAA , Henderson and Las Vegas posted the lowest price at $2.34, and Sparks has the highest average at $2.62.
“OPEC reached an agreement on November 30 to cut oil production by 1.2 million barrels a day beginning in January, 2017. The agreement caused oil prices to increase and pushed the national average price higher,” said Cynthia Harris, AAA Nevada spokesperson in a press release. “While the proposed cuts in production have had the intended effect on prices, market watchers look to sustained compliance to these production cuts among oil-producing countries to determine their long-term effectiveness.”
The national average has increased for 14 consecutive days, following the OPEC oil production agreement on November 30. Today’s average of $2.21 per gallon is up $0.03 per gallon on the week, and $0.02 per gallon on the month. The national average is up $0.20 compared to the same date last year.
Over the weekend, OPEC and non-OPEC producers reached their first deal since 2001 to reduce global over supply and rebalance the market by limiting oil output. Producers from outside the 14-country group agreed to reduce output by 558,000 barrels per day. Of that amount, Russia has agreed to cut 300,000 barrels per day with the remaining non-OPEC members cutting the remaining 258,000 barrels to reach the agreed upon levels. As a result, traders will continue to watch how OPEC and non-OPEC members move forward with the terms of the agreement starting in 2017.
At the close of Friday’s formal trading session on the NYMEX, WTI was up 66 cents to settle at $51.50 per barrel.
