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Oil Prices Rose to $79 for First Time Since 2014

Oil Prices climbed on Tuesday to their highest level in nearly seven years after OPEC and its allies declined to significantly ramp up production. The crude prices in the US jumped another 1.4% to settle at $78.93 a barrel.

It was trading above $79 a barrel, a level unseen since November 10, 2014. The 63% spike in Oil Prices so far this year is heightening inflationary pressures weighing on the world economy. Prices at the pump remain elevated.The national average for a gallon of regular gas rose to $3.20 on Tuesday, up from $2.19 a year ago. The latest oil rally comes a day after OPEC+ announced it was sticking to a plan to increase the production modestly despite lofty energy prices.

The Saudi Arabia-led group reiterated it will increase output by 400,000 barrels per day for November. White House officials have been calling for OPEC+ to stimulate the recovery of production that was sidelined during the beginning of the pandemic. The Biden administration has raised concern that high energy prices could slow the economic recovery.

Natural gas prices surged nearly 10% on Tuesday to finish at the highest level since December 2008.US natural gas finished on Tuesday at $6.31 per million British thermal units. They were less than half that a year ago, spiking 140% over that span.Natural gas remains far cheaper than the 2008 peak when it topped out at $13.58 per million BTUs. And US natural gas prices haven’t increased nearly as much nor as high as they have overseas.

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