OPEC plus nations have agreed to extend oil production cuts that were set to expire this month. The decision involves OPEC members reducing output by over 5 million barrels per day, which accounts for approximately 5% of global demand. These production cuts are now scheduled to continue through 2025, raising concerns about the cost of gasoline leading up to the November election.
The President of the U.S. oil and gas Association highlighted that while OPEC's actions influence oil prices, their control over global prices has diminished compared to two decades ago. The rise of U.S. oil production has played a significant role in this shift, helping to stabilize prices around $75 to $80 per barrel for American consumers.
