U.S. drivers don’t need to be too concerned about the first-quarter oil output cuts announced by major producers this week, but an extension of the reductions beyond March would be cause for worry when it comes to gasoline prices at the pump.

On Thursday, the Organization of the Petroleum Exporting Countries and their allies, together known as OPEC+, announced that several of its members agreed to make voluntary reductions to their crude production in the first three months of 2024.

The average price of gas dipped to $3.24, only a 2-cent drop from the week prior, according to the latest report from AAA. Pump prices on average are 26 cents less than a month ago and 26 cents less than a year ago. 

The decrease in gas prices may lose momentum following a recent uptick in oil prices. Reduced demand for gas has helped keep pump price increases in check, AAA said.  

OPEC+ agreed to a significant production cut of an additional million barrels a day, delegates said, in a move that will likely keep prices elevated amid the continuing conflict in the Middle East.

As part of the deal reached Thursday, Saudi Arabia also agreed to extend its cut of 1 million barrels a day that it announced in June.

Taken together, the moves are expected to stabilize prices at a moment when geopolitical tensions are high around the world and economic growth is slowing.

In a gift to American shoppers this holiday season, gasoline prices have dropped for 61 consecutive days after getting dangerously close to $4 a gallon in September.

The average price for a gallon of regular gas stood at $3.25 a gallon on Tuesday, according to AAA. That’s down five cents from a week ago and 26 cents from a month ago.

Gas prices have now fallen every day since the peak on September 18, AAA data shows. The streak is a victory for consumers, saving them extra cash just in time for the crucial holiday shopping season.

Thanksgiving is one of the busiest travel times of the year in the United States as families across the country gather to celebrate the holiday.

People will take to the roads and airports in droves over the next week, with travel analysts predicting more people will be traveling for the holiday than last year. From Wednesday through Sunday, AAA predicts 55.4 million travelers will head 50 miles or more from home.

Life in 2023 means being in a constant state of sticker shock.

On the heels of competing megadeals, 

Exxon Mobil and Chevron reported a combined $15.6 billion in profits Friday, as oil and fuel prices climbed in the third quarter.

Exxon’s quarterly earnings of $9.1 billion were less than half of last year’s quarterly record but rose 15% from the previous quarter. Margins for making fuel widened and the company’s oil refineries produced more than any third quarter since 1999.

Exxon Mobil is closing in on a deal to buy Pioneer Natural Resources, a blockbuster takeover that could be worth roughly $60 billion and reshape the U.S. oil industry.

A deal could be sealed as soon as in the coming days, though it is still possible there won’t be one, people familiar with the matter said.

After posting a record profit in 2022, Exxon has been flush with cash and exploring options that would push it deeper into West Texas shale.

Prices at the pump in California are nearing $6 per gallon as refinery issues persist. 

The average price for a gallon of regular gasoline in California hovered around $5.79 on Thursday, up 29 cents from a week ago and 54 cents from last month, according to data from AAA. 

Workers at Chevron’s two liquified natural gas plants in Australia — which accounted for 7% of global LNG supply last year — escalated their strikes, union representatives said. Workers may soon go on a total strike or hours-long work stoppages ahead of a tribunal hearing. Meanwhile, a fault at one of the plants temporarily shut output by 25% on Wednesday. LNG prices have risen on the back of the strikes, while analysts are bracing for increased volatility in gas markets in the months ahead.