Oil prices climb to their highest level in almost seven years after OPEC says it will not ramp up production.
The price of oil topped 79 dollars a barrel Tuesday. The last time that happened was November of 2014. Natural gas also surged nearly 10 percent. Despite lofty energy prices, OPEC says they'll only modestly boost production. Goldman Sachs ramped up its forecast on oil prices Sunday, calling for Brent crude to hit 90 dollars by the end of the year. GasBuddy petroleum analyst Patrick De Haan says a global energy crunch is leading to a spike in the price.
“Electric consumption being forced down in China by a lack of coal, a natural gas shortage in Europe, and of course here in this country, our own challenges after Hurricane Ida shut down Gulf of Mexico oil and gas production,” De Haan said.
He notes gas prices usually go down in the fall, but so far that hasn't happened this year.
“With this energy crunch that’s developed… I don’t know that we will see really any downside to gas prices for the foreseeable future,” De Haan explained. “It does not look good for motorists.”