OPEC look to stick closely to the set amount of oil output of barrels per day even as demand rises sharply given the increased consumption by industry and travel as the world economy recovers from the pandemic. This has led to drastic increases in gas prices as US drivers are paying almost a dollar more per gallon as compared to a year ago. The high prices have pressured non producing countries like the US to tap national reserves and increase supply, however this has done little to stem rising prices. Prices have also been impacted by the tensions in eastern Europe where the threat of sanctions against Russia could impact supply as well. While high prices benefit the producing countries budget they would be cautious to let them climb too high as this would negatively impact demand.
https://www.usnews.com/news/business/articles/2022-02-02/opec-decides-oil-output-amid-concern-over-russia-ukraine
This is definitely a big problem that I have noticed in my everyday life. The gas prices seem to be increasing all the time which makes having a car very difficult in college. I wonder what kinds of policy changes need to be made in order to stem these high prices.
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