Oil prices rise in anticipation of an OPEC production cut

The price of WTI increased by 5.4% last Monday alone, reaching a per-barrel price of $83.78. Brent crude oil rose to $89.21 dollars, a 4.8% hike. The price of gasoline in Los Angeles has vaulted up to $6.466, surpassing the city's previous record high set in June. These increases come just days before an OPEC meeting scheduled in Vienna on Oct. 5.

The meeting will be the first time that OPEC members have convened in-person since 2020. Dan Pickering of Pickering Energy Partners told CNBC that "OPEC+ is not meeting in Austria for the first time in years to do nothing, so there is going to be a cut of some historic kind."

Experts predict prices to rise above $100 a barrel

Most experts predict a decline in production of between one to one and a half million barrels per day. However, Pickering believes that the reduction will not be as dramatic, predicting a cut of around 500,000 barrels. In the analyst's opinion, this amount would be "enough to sustain the market in the short term" and raise the price of the barrel above $100.

In the meantime, the effects are already being felt, as market anticipation has caused price hikes. In Los Angeles, the cost of gasoline continued to increase in recent months while prices mostly dropped in the rest of the country. After enduring 31 straight days of increases, the per-gallon cost in the country's second largest city has reached unseen levels.

Newsom will enable a cheaper though less green blend

Californians typically pay a higher price for gasoline due to the environmental regulations of Democratic Governor Gavin Newsom. Taxes and limitations imposed on gas stations have shifted considerable burden of the cost onto citizens.

In light of the situation, Newsom announced that he will grant temporary permission to gas stations to serve a "winter blend," which is considerably cheaper but will exceed the state's allowable emissions.