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Here’s what OPEC’s shock oil production cuts mean for U.S. gas prices [Video]

National Energy News

Oil markets shuddered after a surprise announcement this weekend that Saudi Arabia and other oil-producing countries would cut their output of crude oil, potentially pushing up gas prices just as millions of Americans hit the road this summer.

With the price of Brent crude, the international oil standard, jumping about 6% to $85 a barrel on Monday, motorists should expect prices at the pump to rise between 5 cents and 15 cents per gallon within the next two weeks, analysts told CBS MoneyWatch. By summer, the average national price for regular gas is likely to be around $4 a gallon.

If the price of crude stays at or above $80 a barrel, “we could see the national average price move in the 8-to-12 cent range, and we haven’t seen it yet,” AAA spokesperson Andrew Grossman said. 

The cost of crude accounts for about half of the overall price of gas, according to the Energy Department. …

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