Photo: Getty Images
Gas and oil prices are expected to rise after ministers from the Organization of the Petroleum Exporting Countries(OPEC+) announced they will be cutting oil production by two million barrels per day starting in November.
That cut is equal to about 2% of the global demand for oil.
The announcement resulted in the price of Brent crude oil increasing by more than 1% as it approached $93 a barrel. The cost of U.S. oil also rose, increasing by 1.5% to $87.75.
President Joe Biden briefly addressed the cuts as he departed the White House for Florida, where he will meet with Governor Ron DeSantis and survey the damage caused by Hurricane Ian.
“I need to see what the detail is. I am concerned. It is unnecessary,” he said in response to a question from CNN’s Arlette Saenz.
Gas prices have been up and down all year. They spiked in the early part of the year as Russia launched an invasion of Ukraine. Then, after reaching record highs in March, the cost of gas began to drop off before rising again over the summer.
The latest cuts in oil production will likely result in higher gas prices heading into the holiday season.
The OPEC+ ministers will meet again in December.