Since last fall, Saudi Arabia-led OPEC and Russia have announced plans to slash output by almost 5 million barrels per day through July, according to Lipow.Īlthough OPEC and its allies, known as OPEC+, likely have not cut that full amount of output, whatever cuts they have implemented are starting to be felt in the market. Lipow blamed two powerful forces: OPEC and Russia cutting production, and extreme heat. Still, gas prices have increased by 8 cents over the past week. And the national average remains far from the record high of $5.02 a gallon last June. To be sure, gas prices are still down by 72 cents a gallon from a year ago. And consumers have been feeling better, with consumer confidence hitting a two-year high in July.Ī return of higher food and fuel prices could unravel those positive trends. Investors are betting the Federal Reserve will soon be able to wrap up its inflation fight. Wheat and corn prices have rallied after Russian attacks on port infrastructure in Ukraine.Ĭooling inflation, driven in part by easing gas prices, has raised hopes that the United States can avoid a recession. The unwelcome shift higher in pump prices follows a jump in oil prices, which have climbed to three-month highs as part of a broader rally in commodities. David Paul Morris/Bloomberg/Getty ImagesĪs recently as July 4, gas prices had experienced a nearly unprecedented year-over-year decline. Gasoline prices have risen in tandem with crude oil and other commodities.
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