As oil prices drop, top producers unsure of market

NORTHAMPTON, Mass. (WWLP) - A drop in the prices at the pumps is good news for drivers.  But some of the world's top oil producers say they've fallen too far.

It started last Saturday, when Iran's oil minister called the drop in oil prices "illogical.” Now, the Organization of the Petroleum Exporting Countries (OPEC), comprised of the world's top petroleum exporters, could meet to discuss falling oil prices; a move that could put oil production at risk. 

Last Friday, crude oil futures were down nearly $11 from a year earlier, ending the trading day at $84.96/bbl.  But for one Florence family, gas is still expensive.

“$60 to $120 per week on gas depending on how many times we have to fill and where we are headed,” said Herb Heller of his weekly gas budget; one of the reasons he says he opted out of road trip and instead will celebrate the 4th of July at home.   

Experts say if top oil producers decided to cut production it will shrink supply, and that's a bad combination for consumers.

“In theory, it could mean they go up because they would convince the other members to cut production.  In reality, probably the Saudi’s will hold firm so gas prices will continue to slide,” said President of Strategic Energy & Economic Research , Michael Lynch.  

At the pump on Monday, average gas prices in Massachusetts remained nearly a dime higher than the national average; but still more than $0.25 cents less than the average a year ago.

“I can understand what they are trying to do, as a consumer I want oil prices lower and as a producer I want oil prices higher,” said Paul Canty in Northampton, Monday afternoon.

Lynch says it will be tough to convince Saudi Arabia, the top oil producer, to cut production.  Last month, they pumped 10 million barrels of oil a day, a 30-year-high.