A surprise announcement by OPEC+ nations Sunday sent oil markets rallying in the overnight trade.
The nations say they will cut production by 1.5 million barrels per day. Overnight prices reached a high of $81.69 before they began to taper. That sent global crude oil prices up 3.3 percent, and some analysts tell Reuters that $100 oil is just around the corner.
Oil and gas prices typically go up this time of year ahead of the summer driving season, but $100 oil could send overall inflation ticking upward again just as the Federal Reserve is starting to get a handle on it.
Farmers are paying roughly $4.20 a gallon for diesel this spring planting season, which is well below the average price this time a year ago when farmers were paying upwards of $5.00 a gallon. The Sunday cuts will likely send gasoline and diesel prices up.
Sunday’s announcement to cut production was led by Saudi Arabia, which called it a “precautionary measure” to stabilize the global oil market.
Story via Reuters
