OPEC's decision not to raise production 'causes immediate reaction in oil prices'

Oil prices rose to their highest level in seven years, a response to OPEC’s decision not to raise production.

A barrel of West Texas Intermediate crude oil rose to more than $80 per gallon. Gas prices in Texas are 8.3 cents per gallon higher than a month ago, according to GasBuddy price reports, and $1.04 a gallon higher than a year ago.

Patrick De Haan, head of the petroleum analysis for GasBuddy, cited OPEC’s decision not to raise production more than it already has agreed, as a key factor for the increase in prices.

“The OPEC decision caused an immediate reaction in oil prices, and amidst what is turning into a global energy crunch,” De Haan said. “Motorists are now spending over $400 million more on gasoline every single day than they were just a year ago.”

Texas gas prices rose 6.8 cents per gallon to an average of $2.90 per gallon in a survey of 13,114 stations. GasBuddy reports prices rose from $2.59 per gallon to $3.60. The national average is up 5.2 cents per gallon in the last week to an average of $3.25. That’s $1.08 higher per gallon than this time last year.

The surging demand for oil comes after President Joe Biden canceled the Keystone XL Pipeline at the beginning of his presidency. The rejection of his request for OPEC+ to pump above its current levels of production trigged the demand and rise in prices.