Weekly gas prices up from previous year for first time since 2014

Oct 25, 2016

For the first time in more than two years, the national average price for a gallon of gasoline this week is higher than it was a year ago. According to a survey by GasBuddy, a company that compiles data on gas prices, national prices are up a penny from last year at this time.

Despite these findings, average prices in Buffalo are down from a year ago, according to GasBuddy.com Senior Petroleum Analyst Patrick DeHaan.

“Prices in Buffalo have been inching up a little bit, the average price today is $2.31 per gallon around the area. Actually this is still about five cents lower than where they were last year,” DeHaan said. “Meanwhile the national average stands at $2.22 a gallon, about 10 cents under Buffalo, but the national average is up about a penny versus a year ago.”

Average prices in Buffalo for the week of October 24 have varied widely over the last five years. They went up from $3.68 in 2011 to $4.02 in 2012. Since then average prices have gone down for the week, until this year.

Gas prices are up because of anticipated oil production cuts from OPEC, DeHaan tells WBFO.

“OPEC about three weeks ago signaled that it is finally ready to balance oil markets by cutting oil production that would better match current demand levels and news of a possible production cut from OPEC has sent oil prices higher and thus the national average has begun to increase,” he said.

The organization will hold meetings in November to determine if these cuts are needed. The result of these meeting will shape gas prices for the following months.

“By the end of November we should have a pretty good direction on where gas prices are going. They are likely to go up if OPEC does cut production. On the other hand if OPEC increases or holds oil production the same, gas prices will likely decline.”

DeHaan anticipates gas prices will not be as low in the winter and summer in 2017 as they were this year.