The U.S. "unintentionally" adopted plans to control oil prices. Gasoline per gallon rose by more than $1 over the same period last year. Crude oil prices were the highest since 2014.
The U.S. Department of Energy said on Thursday (October 7) that it has no plans to take immediate action to ease the surge in oil prices. Due to the strong demand in the energy market and the tight supply, the US WTI crude oil futures, the oil benchmark, exceeded US$80 per barrel for the first time on Friday (October 8) since November 2014.
Amid the energy austerity sweeping across Europe and Asia, oil prices have soared in recent days as commodities such as natural gas and coal have soared.
John Kilduff, a partner at Again Capital, said: “The price of $80 is not surprising. Despite the increase in US crude oil inventories in this week’s report, the global market still has strong demand and supply shortages. Unless OPEC+ takes Action to increase supply meaningfully, otherwise prices will continue to rise."
Rystad Energy senior oil market analyst Louise Dickson said on Friday: “This is another blockbuster in the energy market this week. As global energy supplies squeeze fuel supply, oil prices have risen further.”
Despite the recent supply shortage in the energy market, OPEC and its allies chose to stick to the previous agreement to moderately increase production by 400,000 barrels per day in November, and oil prices were boosted early this week. Before that meeting, some people thought that the group might choose to produce more products to meet the growing energy market demand. Crude oil prices were also boosted on Thursday after the U.S. Department of Energy stated that it is currently not using strategic oil reserves to cool rising prices.
The US Department of Energy said in a statement: "The Department of Energy will continue to monitor global energy market supply and will work with our institutional partners to determine if and when action is needed. All strategies we can use are considering protecting the United States. People, there is currently no plan to take these actions immediately."
Higher oil prices mean higher gasoline prices. Consumers across the United States paid for gasoline the highest in seven years. According to data from AAA, the average price of gasoline per gallon in the United States on Friday was $3.26, more than $1 higher than last year.