Oil prices expected to rise in 2017

(WLFI/WSPA) — A Purdue economist warns prices at the pump are likely to go up in the coming year.

Dr. Wally Tyner says the jump is expected because of a decision by the Organization of Petroleum Exporting Countries or OPEC. The organization made an agreement to cut crude oil production by 1½ million barrels per day in 2017.

OPEC is made up of 12 Middle Eastern, North African and South American countries.

Tyner says consumers are likely to notice the difference when heating their homes, as well as at the pump.

Earlier this week, AAA said gas prices are at the highest price since October. The national average was $2.24 per gallon for regular unleaded gasoline as of Monday – climbing 11 cents over a 21 day period.

The OPEC deal to cut oil production is expected to start in January 2017, according to AAA.

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