By Kevin Haas
Rock River Current
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ROCKFORD — Gas prices have surged here and across the country after the price of crude oil reached a seven-year high.
U.S. crude oil rose to $82.18 a barrel early Monday, and stood at about $80.50 as of 1:30 p.m. If that holds, it will be the first time since October 2014 U.S. oil closed above $80 a barrel, according to the Wall Street Journal.
Prices have risen as demand has rebounded amid economic recovery from the pandemic, and there are supply shortages after the Organization of Petroleum Exporting Countries and allies, known by the acronym OPEC+, opted not to further boost supply.
“The nation’s gas prices were also pushed to their highest since 2014, all on OPEC’s decision not to raise production more than it already agreed to in July,” said Patrick De Haan, head of petroleum analysis for GasBuddy, in a news release. “The OPEC decision caused an immediate reaction in oil prices, and amidst what is turning into a global energy crunch, motorists are now spending over $400 million more on gasoline every single day than they were just a year ago.”
In Rockford, the average price at the pump was $3.44 per gallon early Monday, according to GasBuddy. That’s nearly 10 cents higher than this time a week ago.
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The national average gas price rose more than 5 cents to $3.25 per gallon, according to GasBuddy, which compiles data from more than 150,000 gas stations across the country. The national average is up more than 7 cents from a month ago and $1.08 per gallon higher than a year ago.
OPEC+ agreed in July to raise oil production by 400,000 barrels per day each month until 2022, when production is expected to return to pre-COVID levels. However, it said last week that it will not increase that further to meet rising demand.
“The problems continue to relate to a surge in demand as the global economy recovers, combined with deep cuts to production from early in the pandemic,” De Haan said in the release. “If Americans can’t slow their appetite for fuels, we’ve got no place for prices to go but up.”
This article is by Kevin Haas. Email him at khaas@rockrivercurrent.com or follow him on Twitter at @KevinMHaas or Instagram @thekevinhaas.