What OPEC’s oil cut could mean for Nebraska consumers

LINCOLN, Neb. (KLKN) – Gas prices are rising again, but they won’t get as high as they did in the summer, experts say.

The Organization of the Petroleum Exporting Countries is planning to slash oil production by 2 million barrels per day in November.

It is the biggest cut since the start of the pandemic.

Economic experts like Creighton University’s Ernie Goss say gasoline prices might go up, but the impact will be limited.

“I expect gasoline prices to, again, rise some more in the weeks and months ahead,” Goss said. “But not anywhere close to the $5 and above that we saw earlier in the year.”

OPEC, which includes Saudi Arabia and Russia, met in person Wednesday for the first time since March 2020.

The alliance said the move comes of the uncertainty that surrounds the global economy.

Goss said rising oil prices could mean inflation will stay higher for longer.

This could add pressure on the Federal Reserve to hike interest rates even more aggressively.

Gas prices hit their highest point in June, when the national average reached $5 per gallon.

Even though it is not expected to get as high this time, Goss said Nebraskans will still see an impact on their pockets ahead of holiday season.

“So, the problem for Nebraskans and people in this part of the country is that we drive longer distances, so we typically use a lot more oil,” he said.

He said if consumers spend more on gas, they will have less to spend on the holidays.