Oil Prices Reach 7 Year High, Gas Prices Surge

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Oil prices reached a seven-year high last week, pushing fuel prices higher. The national average price of gas jumped 5.2 cents to $3.25 a gallon, and the price of diesel increased 10.4 cents to $3.45 a gallon, according to GasBuddy. Gas prices were pushed to their highest since 2014, all on OPEC’s decision not to raise production more than it already agreed to in July. GasBuddy’s Patrick De Haan says, “The OPEC decision caused an immediate reaction in oil prices, and amidst what is turning into a global energy crunch, motorists are now spending over $400 million more on gasoline every single day than they were just a year ago.” De Haan adds the problems continue to relate to a surge in demand as the global economy recovers, combined with deep cuts to production from early in the pandemic. With OPEC last week deciding against an additional rise in oil production to meet rising demand, supply will likely remain tight.