Gas Prices Rise; Expected to Continue

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Gas Prices Rise; Expected to Continue

CAMARILLO, Calif. -- As the holidays approach, gas prices are rising, according to the most recent Lundberg survey of 7,000 gas stations across the country, The Associated Press reported.

For the last two weeks, gas prices rose an average of four cents per gallon, to $2.27 for a gallon of regular gasoline on Dec. 1. Mid-grade gasoline was priced at $2.38 and premium at $2.48.

The lowest price was found in Tulsa, where a gallon of gas cost $2.09, the report stated. Hawaiian drivers are seeing the highest prices, at $2.74 a gallon.

This year's low prices may not last however, as the Organization of Petroleum Exporting Countries (OPEC) has threatened to cut production by half a million barrels at their next meeting, according to a FOX News report.

Oil ministers from Venezuela and Nigeria confirm that another production cut may be in order, as the first cut of 1.2 million barrels in late October proved ineffective.

"There is likely to be some further trimming, the actual amount will depend on circumstances," said Edmund Daukoru, Nigeria’s oil minister.

Last week, Rafael Ramirez, the oil minister for Venezuela, stated that OPEC would cut production by 500,000 barrels a day. The same day, Venezuelan president Hugo Chavez announced that OPEC members would keep oil prices at $50 per barrel.

"I don't expect anything less," Daukora told reporters.

Oil prices jumped to a two month high on the word that fuel inventories were decreasing with the onset of winter in the Northern Hemisphere, the report stated.

The next meeting will be Dec. 14 in Nigeria, according to FOX News.