Major oil producing nations over the weekend extended previously announced oil supply cuts through the end of next year.
The group of countries, known as OPEC+, said Sunday it would extend voluntary supply cuts announced in April until the end of 2025. It also extended further cuts, announced in November, through September of this year.
The extended cuts are expected to exert upward pressure on oil prices in the months ahead, though they will not be the only factor that has influence.
Any increases in oil and gasoline prices are expected to hurt President Biden’s campaign, regardless of whether they are tied to his actions.
The oil producing countries said that in September, they will begin phasing out the 2.2 million barrels per day cut on a monthly basis until the end of September 2025.
Despite the extended cuts, prices for international benchmark brent crude oil were relatively low on Monday, falling below $80 per barrel for the first time in several months.
U.S. gasoline prices averaged $3.53 per gallon on Monday, down from $3.59 a week ago.