Oil was priced at 58.93 a barrel today, but we can look at that to go up if OPEC cuts its production by 1.2 million barrels a day effective November 1. The organization may decide to cut production down further, we will find out after their next meeting which is scheduled for December.
Right now the supply is great and the effects of the production cuts have not been felt yet. It remains to be seen how quickly the cuts will be felt if OPEC cuts production any further.
Consumers have had a tough time at the pump since the hurricane season of 2005, when refineries and pipelines were devastated. They are recovering, but since they lie in hurricane alley, there was great fear the damage would be repeated during the 2006 season. This, as we know, did not happen. I bet we will all be watching the weather summer.
For right now we can forget about the gas prices of the summer, and breathe a little easier when we pull into the gas station, but for how long? We will have to wait until December to hear if there will be another production cut, and if so, we may see the prices begin to go up again.