The benefits of visiting a gas station (wonderful scent) are beginning to outweigh the disadvantages (increasing pricing), and the White House is trying to respond.
The Biden administration requested OPEC+ to produce more oil yesterday, claiming that high gas prices are hurting the economy’s recovery.
The Organization of Petroleum Exporting Countries (OPEC) is a collection of countries that produce around 40% of the world’s crude oil.
They’ve just expanded into OPEC+, which is a larger group of OPEC nations and also includes Russia, rather than a streaming service.
The backstory: OPEC+ cut output by a whopping— 10 million barrels per day—during those extraordinary circumstances last spring. The group has agreed to gradually increase supply over the course of next year, but the United States believes it will not be enough to fulfil increased demand for gas while keeping prices from squeezing Americans’ wallets.
Calculate gas costs as follows:
According to AAA, the national average was $3.185 a gallon yesterday. It was $2.174 a year ago.
For the first time since 2014, the national average surpassed $3 in May.
Of course, petrol isn’t the only product that has become prohibitively costly in recent years. Consumer prices rose 5.4 percent year over year in July, according to the Labor Department, indicating that inflation is a distinguishing feature of the post-lockdown economy. However, the data provided ammunition to analysts who argue that increased inflation is only temporary—price rise has moderated since June.
Will OPEC’s policy alter as a result of the United States? Not on your nelly, no way. Saudi Arabia, the world’s largest oil producer, said it was ironic that the US was requesting more oil while being on a high-profile campaign to reduce emissions. Another OPEC delegate answered that the proliferation of the Delta version meant that a complete rebound in gasoline demand is unlikely.