CHARLOTTE, N.C. — A squeeze on the global economy's oil production could increase gas prices in the weeks to come, oil industry experts warn. As of this week, Saudi Arabia is planning to reduce how much oil it sends to the global economy.
CEO and Founder of King Operating Corporation, Jay Young said this will hamper the global economy's supply, ultimately shifting demand.
"Going to have a lot less gas going into the market. Which means that over the next three to six months, prices are going to go up," Young explained to WCNC Charlotte.
Young said that Saudi Arabia and other major producing countries apart of OPEC are looking to prop up the dipping price of crude oil. They're looking to cut 1 million barrels a day beginning in July.
"They realistically want the price to be between $80 and $100 a barrel," Young said. "Saudi wants to get to that range rather than going too high or too low."
He believes that as production cuts are extended into next year, the prices of gasoline will go up. Larger American companies are also slowing down production simultaneously.
Contact Colin Mayfield at cmayfield@wcnc.com or follow him on Facebook, Twitter and Instagram.
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