The OPEC meeting on Sunday could affect domestic gas prices, according to an industry analyst.
According to AAA, the Saudi-led OPEC oil cartel and allied producers, including Russia, decided to maintain output cuts of two million barrels per day to boost the global price of oil.
The price of oil has dropped due to fears that the coronaviruses outbreaks and the strict zero-COVID restrictions in China would reduce fuel demand in a significant economy. Recession fears in the U.S. and Europe raise the possibility of lower demand for gasoline and other fuel made from crude.
AAA spokeswoman Andrew Gross said that gas prices are dropping sharply and are only a nickel more per gallon than a year ago. The OPEC move could slow this decline, because oil is the main ingredient in gasoline, although prices will likely still be lower than they were a year ago, Gross said.
The national average for a gallon of gasoline fell 14 cents to $3.40 over the past week, according to AAA. That's down from an average of $3.79 a month ago and a record high of $5 from earlier this summer, according to AAA data.
A Sunday meeting with 23 oil-producing nations took place just one day before planned sanctions against Russia's oil earnings in retaliation of Ukraine's invasion of Ukraine, potentially tightening supply and driving up prices.
This includes a boycott of most Russian oil and a price cap of $60 per barrel on Russian exports imposed by the EU and the Group of Seven democracies.
It is not known how much Russian oil the two sanctions measures could take off the global market.
The OPEC decision to cut production quotas, announced in October, was shortsighted by the White House, which has been pushing for more oil supply. At a time when maintaining a global supply of energy is of paramount importance, this decision will have a negative effect on the poorest and middle-income countries that are already reeling from elevated energy prices, National Security Advisor Jake Sullivan and NEC Director Brian Deese said in a joint statement.