Global oil supplies will tighten, intensifying concerns over soaring inflation after the OPEC+ group of nations announced their biggest supply cuts since 2020 ahead of the European Union’s embargo on Russian energy.
The move has widened the diplomatic rift between the Saudi-backed bloc and Western powers, which fear higher energy prices will hurt the fragile global economy and hinder efforts to deprive Moscow of oil revenues after Russia’s invasion of Ukraine.
This is likely to push prices higher, particularly for Middle Eastern oil, which meets about two-thirds of Asia’s demand, industry players said, adding to inflation concerns as governments from Japan to India battle rising cost of living, while Europe is expected to raise prices. price. burn more oil to replace Russian gas this winter.
The median price per gallon is $3.87 — up from $3.72 one week ago, according to GasBuddy.
Gas prices fell for 98 consecutive days during the summer. In June, the average price across the country was more than $5 a gallon.
In the interim, oil prices fell relatively low – dropping below $80 a barrel for the first time since January.
Reuters contributed to this report.