Demand for gasoline is on the rise, but oil production is not expected to increase in the near future which will result in higher prices at the pump.
According to Gasbuddy.com, OPEC cut oil production in 2020 and there is a delay in raising production to meet the global rise in demand since the onset of the COVID-19 pandemic. Analysts predict that gas prices could reach $3.00 a gallon of gasoline by Memorial Day, or surpass that $3.00 threshold.
Gasbuddy.com statistics show that the last time the national average reached the $3.00 per gallon mark was October 10, 2014.
Early in the pandemic, OPEC cut about 10 million barrels of oil production daily which remains in effect. U.S. production was also cut drastically after the pandemic curbed demand and pushed oil companies to lose billions of dollars..
However, as vaccines have spread country to country, demand for oil has rebounded.
Pay with GasBuddy data shows gasoline demand last week reached the highest level in nearly a year, and it is almost where it was prior to the pandemic.
