Gas prices may be ticking up again this week

ALBANY — Thanksgiving’s busy travel weekend is over and motorists will soon learn whether world oil producers will play Scrooge during the remainder of the holiday season. Prices already are poised to rise as much as a nickel a gallon this week, market watchers say.

While the Thanksgiving holiday period was heavily traveled, average retail gas prices were 35-40 cents higher per gallon at the pump than they were last year.

Members of OPEC, along with Russia and other oil-producing nations, are set to meet Thursday in Vienna. On the agenda is whether to continue to keep the faucet tight on oil production, which would continue upward pressure on gas prices.

“With Thanksgiving travel now behind us, all eyes turn to OPEC and their meeting this week to determine the fate of the cartel’s oil production,” Patrick DeHaan, head of petroleum analysis for GasBuddy, said Monday. “Gasoline prices took a breather heading into Thanksgiving, which may last another few days, but as oil prices perk back up heading into OPEC’s annual meeting, we may see a rebound soon.”

Whatever OPEC members decide, it likely will have an impact on gas prices U.S. motorists pay next year, he said.

“OPEC’s decision may reverberate at pumps in the months and year ahead, and while the decision is likely to be an extension of production cuts made at their meeting a year ago, it’s certainly not yet guaranteed,” DeHaan said. “Global oil inventories have already tightened noticeably in the last year and continuing such in the face of rising demand may spur oil prices even higher in the days, weeks and months ahead.”

Mark Jenkins, a spokesman for AAA Auto Club, said preliminary reports indicated the 1.8 million barrel per day reduction that non-U.S. oil producers agreed to Nov. 30, 2016, could be extended through the end of 2018. AAA officials noted that crude oil rose to $59.95 a barrel last week as markets reacted to the possibility of the extension of the pact. That was the highest settlement since June 2015. On Monday, U.S. crude fell to $57.83, down $1.12.

“When oil prices rise, it becomes more expensive to produce gasoline,” Jenkins said. “Prices at the pump are poised for an increase of 3-5 cents, based on current fundamentals.

“However, the oil and gasoline markets are likely to be volatile this week, and prices could face additional upward pressure as we creep closer to the OPEC meeting.”

On Monday, AAA’s Daily Fuel Gauge Report had the U.S. average for a gallon of gas at $2.507, down 3.5 cents in a week and 4.1 cents above last month. year-to-year, it;s survey showed motorists paying 38.1 cents more per gallon. GasBuddy’s Fuel Insights survey had Monday’s average at $2.498, down 4 cents in a week and 3.3 cents higher than last month. It’s year-to-year difference was 37.5 cents higher.

In Georgia, motorists were averaging $2.362, according to AAA, a 2.8-cent decline in a week and just over a half-cent below last month. The difference from 2016 was up 27.4 cents. GasBuddy’s state average Monday was $2.355, flat from last week and 2.9 cents higher than last month. It’s year to year difference was 27 cents higher.

The five-county metro Albany was fourth lowest among the state’s 15 metro areas surveyed by AAA on Monday. Albany motorists were paying an average $2.284, down 3.1 cents in a week and a half-cent higher than last month. Compared to last year, Albany drivers are spending 22.6 cents more per gallon.

The least expensive gas among Georgia’s metro areas Monday was in Warner Robins, where drivers were paying an average of $2.258. The most expensive fuel was in Savannah, where the average was $2.395.

Meanwhile, the Atlantic hurricane season, which produced numerous powerful cyclones during an active 2017, appeared to be headed toward a quiet close. The official storm season ends Thursday and the National Hurricane Center on Monday said there was no cyclone formation expected through the end of the week.