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Oil Prices Rise to Highest Level in 10 Months

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Oil well pumpjack with abstract skyline of Dubai on background | Schumer: Biden Must Tap US Oil Reserves To Lower Gas Prices | featured

As the Biden administration continued its policy stifling US production, and OPEC predicted that demand would remain high this year and next, oil prices shot dramatically up on Thursday.

The price of November Brent crude futures, the international standard for oil prices and the price that is most closely correlated with U.S. gas prices, increased by almost 1.5 percent on Tuesday morning until prices started to decline, gaining only about 1.3 percent. Brent futures reached a high of $92.31 a barrel on Tuesday morning, marking the first time since last November that prices have above $92.

The price of U.S. West Texas Intermediate crude futures increased even more sharply, 1.75 percent, peaking at $89.18 per barrel. Moreover, this price is the highest since November.

This week, Brent reached $90 per barrel for the first time in the previous 10 months. This came after Saudi Arabia and Russia said they would continue their voluntary supply cutbacks through the year.r.

On Tuesday, OPEC stated that despite interest rate increases, robust economic growth is anticipated to support rising oil consumption this year and the following year. This year, U.S. economic growth has exceeded expectations, defying projections that the economy would contract as a result of tighter monetary policy and the waning of post-pandemic demand increases.

The cost of gasoline has increased as a result of rising oil prices. According to AAA, the average nationwide price for a gallon of regular gas on Tuesday was $3.836, up from $3.811 one week prior and $3.716 at the same time last year.

Gas costs have greatly increased in the Midwest. For instance, prices in Iowa increased from $3.549 to $3.930 in the previous week.

The Biden administration reversed a Trump administration decision that increased oil production in the region last week by canceling the seven remaining oil and gas leases in Alaska's Arctic National Wildlife Refuge. Also, Biden suggested tighter limitations on drilling in substantial portions of the National Petroleum Reserve-Alaska. Republicans have criticized Biden’s record on fossil fuel policy, pointing out that it is restricting production at a time of high demand, making the U.S. more vulnerable to policy choices in Moscow and Riyadh, and undermining energy investment.

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