Price of oil surges after OPEC announces surprise cuts

Drivers could see gas prices go up once again this summer after OPEC announced surprise cuts today.

COLUMBIA, S.C. (WOLO)–Drivers could see gas prices go up once again this summer after OPEC announced surprise cuts today.

The price of oil surged nearly 5.5% to $80 a barrel.

This comes after oil prices dropped last month, following the turmoil in the banking sector.

Saudi Arabia’s Energy Ministry says its reduction in output is a precautionary measure to support the stability of the oil markets.

The reduction will start in May and last through the end of the year.

The reductions are on top of those announced by OPEC-Plus in October—the largest cut since the start of the pandemic.

This development could mean inflation remains higher for longer.