Louisiana Residents Could Be Paying More at the Pump This Summer
Gas prices have been all over the place recently, and are currently on the way down. But as the busy summer season (which is always busy in terms of travel) begins in earnest this time of year, there's a chance that the prices will jump up again.
Currently, gas prices in Louisiana are averaging $3.10 per gallon, according to AAA, which is down a few cents from where we were a week ago. A year ago, if you'll recall, gas prices had spiked across the country, with Louisiana's average sitting at $4.43.
One of the key indicators as to which way gas prices will go is what oil-producing countries are producing, and there is some bad news on that front: Saudi Arabia is announcing a big production cut, and it's causing some waves in the market.
Saudi Arabia said Sunday it would cut 1 million barrels of oil a day as part of a deal between OPEC and its allies after one of the most contentious production meetings in recent years amid concerns over slowing global energy demand.
Saudi Arabia said the output cut was for July and on top of previously announced curbs, which would be extended until the end of 2024. The United Arab Emirates and some other large producers also extended their previously announced cuts.
However, those cuts may be causing a bit of a bump in oil prices right now, but that may not be the case in the long run.
The Saudi decision to cut output in July, which it said can be extended, could help boost oil prices in the short term, but analysts expect them to continue to trend lower. U.S. gasoline prices usually follow the price of crude oil, but at an average of $3.55 a gallon they are down more than 25% from a year ago and unlikely to shoot back to levels that became a political issue for President Biden last summer.
Nationally, gas prices are currently at $3.55, according to AAA data, but the U.S. Energy Information Administration forecast for the summer prices hovering at around $3.43 or so through the summer, with the occasional spike here and here.
But if Saudi Arabia and other oil-producing countries continue to cut production, that could cause those prices to jump up over the summer, which will make your summer vacation more expensive. Gas prices can affect everything from what you're paying at the pump to what you're paying in airline tickets.
So, Saudi Arabia's decision to cut production can have a bigger impact than you might think.
But, if you're looking for trips that don't cost nearly as much, remember that there are some great options for a staycation right here in the state...