Prices at the pump have increased across the US, despite a global supply surplus.
The price of gasoline in the United States has increased by around five cents per gallon, despite a global oil supply surplus. Gas prices are up over 40 cents from their low point in January 2019, but remain relatively low compared to historical averages. The current average price of gas is $2.60 per gallon, according to AAA. This is the highest price that Americans have paid for gas since 2014.
Why did gas prices go up today?
Gas prices are rising across the United States because of several factors, including increased demand and lower production levels from OPEC nations. OPEC members agreed to cut production by 1.2 million barrels per day (bpd) in late 2018 and early 2019 to try and raise oil prices after they fell dramatically in late 2018.
Oil prices rose throughout most of January, reaching $66 per barrel on January 18th before falling again to $57 on February 4th as OPEC announced that it would extend its production cuts through March 2020.
