So much for OPEC's dreams of cutting production to raise the global cost of oil.
News Radio 1200 WOAI reports the average price of gas in San Antonio actually fell by three cents a gallon in the past week, to $2.05, and the AAA Texas reports its because U.S. oil production has risen enough to completely erase any supply reductions caused by OPEC's cuts.
AAA says OPEC members on Sunday were 'high fiving' over reports that the cartel has successfully limited oil output in an effort to reduce oversupply and support crude oil prices.
"At the meeting, OPEC announced that participating countries had already cut production by 1.5 million barrels per day," AAA Texas said. "Eleven of OPEC's 13 members along with 11 non-OPEC countries struck an agremeent collectively last November to cut production by 1.5 million barrels per day."
But AAA says the only people hurt by OPEC's production cuts were OPEC nations, as each is findings itsel fa little closer to becoming Venezuela as their economies teeter under the wake of substantially lower oil revenues.
"OPEC's production announcement did little to impact crude oil futures, which were trading lower," AAA said. "The drop is likely a result of an increase in U.S. oil production as a result of 35 additional oil rigs."
The introduction of these new rigs brings the total U.S. rig count of 694, which represents a significant increase in output counteracting OPEC's production cut.
Several energy-friendly policies being pursued by the Trump Administration, including okaying the construction of controversial pipelines and removing sometimes meaningless environment regulations, is expected to boost U.S. production even more, and further marginalize OPEC.
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