Today, West Texas Intermediate crude futures traded as high as $76.98, the highest price per barrel since November 2014. On Monday, news of OPEC+ not increasing oil production hit the news. OPEC+ cut production by nearly 10 million barrels a day, in April 2020 to support lower demand from the pandemic. OPEC+ has been meeting monthly since to increase production gradually. The reason this month’s meeting didn’t end in an increase is the United Arab Emirates rejected the proposal.
What’s that mean for the average consumer? Well, it’s pretty obvious, but can result in higher prices at the pump and higher prices to heat your home in the winter. According to Energy Information Administration’s weekly report, the price of diesel in the U.S. is up 7.1 cents from $3.406 to $3.477, from last week to this week. That is $1.09 higher than the same time last year. The biggest increase was seen in the Midwest, where diesel price increases were over 10 cents from last week.
OPEC+ said they will meet again in due time, but no date is set. If supply doesn’t soon meet demand, expect for oil prices to continue to rise.