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Threats Of Production Cuts Could Impact Gas Prices

BEND, OR -- Local gas prices fell again this week. Bend drivers are now paying an average of $4.85 for a gallon of regular. It’s good news for drivers planning their final road trip of the summer. "We are seeing pump price decline for the 10th week in a row," AAA's Marie Dodds tells KBND News, "National average for regular loses 6 cents this week, down to $3.89 a gallon. The Oregon Average slips 4 cents to $4.82."

Dodds says the price of crude is in flux, which is a big factor in gas prices, "We saw the news that OPEC might be considering production cuts, that sent crude oil prices higher. But, we saw crude reach a recent high above $120/barrel in June, and crude has been trading in the $80-90/barrel range this week. So the important thing is crude oil prices are relatively lower."

And, she says, changes in Saudi Arabian production is one of three factors that could drive prices back up, "Any production cuts from OPEC+ would put upward pressure on crude oil prices and therefore upward pressure on pump prices, the increase in demand that we’ve seen for gas in the U.S. and tightening supplies."

Dodds believes Labor Day demand could put some upward pressure on prices before they fall again before the end of the year. 

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