Blink and you’ll miss it – diesel prices are on the rise again, increasing by an average of $.40 in the span of a single week. These price increases come shortly after the OPEC Oil cartel and its allies announced that it will be decreasing oil production. This production cut comes only a few months after United States President, Joe Biden, met with the organization in attempts to encourage an increase in production to offset the lack of output by Russia. The announcement had an almost immediate impact on oil prices, pushing the cost of Brent crude at least 2% higher. OPEC+ has publicized that it will be cutting production by 2 million barrels a day, citing the “uncertainty that surrounds the global economic and oil market outlooks,” though many economists speculate that the cause may be more closely related to Saudi Arabia’s relationship to Russia. This production cut will enable Moscow to sell oil for higher prices, thus fueling Russia’s war on Ukraine. This decrease in oil production will put further strain on supply chains throughout Europe and the United States, consequently contributing to inflation.
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