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US crude jumped 2% to $ 79.22 per barrel, an unprecedented level since November 10, 2014. The 63% The surge in oil prices since the start of the year is amplifying the inflationary pressures weighing on the global economy.
Prices at the pump remain high. The national average for a gallon of regular gasoline rose to $ 3.20 on Tuesday, from $ 2.19 a year ago, according to AAA.
Oil’s latest rally comes a day after OPEC + announced it was sticking to a plan to increase production slightly despite high energy prices. The Saudi-led group reiterated that it would increase production by 400,000 barrels per day for the month of November.
The OPEC decision “has pushed traders into a buying frenzy” because it “guarantees a tight supply situation in November and December,” Louise Dickson, senior oil markets analyst at Rystad Energy, wrote on Tuesday.
For months, White House officials have been asking OPEC + to speed up the return of production that was sidelined when the pandemic began. The Biden administration has expressed concern that high energy prices could slow economic recovery.
“We will continue to use all the tools at our disposal, even though we are not members of OPEC, to make sure that we can keep gas prices low for the American public,” the American public said on Monday. White House Press Secretary Jen Psaki. OPEC + meeting.
Psaki highlighted a series of measures taken by the Biden administration, including working to revive energy facilities decommissioned by Hurricane Ida, freeing barrels from the Strategic Oil Reserve and the Federal Trade Commission monitoring the market. gasoline.
Psaki also noted that the White House has called for a compromise solution that was reached earlier this year in OPEC, allowing a boost in production.
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