American Drivers May Soon Pay More At The Pump

According to the International Energy Agency, an agency that is a representative of 29 oil-importing countries like the U.S., crude oil prices may start to increase. The group announced Thursday that production of oil would decrease by one million barrels each day during the second part of 2016.

This is vastly different from the oil supply glut that’s hurt producers but what consumers have loved since 2014.

American consumers who have loved and gotten used to the cheap gas may soon see their wallets take a hit when they go to the gas pump. When the oil supply surpasses demand, the price of gas drops. When demand is higher than the supply can afford, prices tend to rise.

Of course, commodity prices tend to be very volatile, which means announcements from OPEC or the U.S. Federal Reserve, could affect the direction of crude oil. It’s why it’s hard to predict what the price of crude oil will be in a year.

As for the moment, the gas prices in the U.S. is extremely low – under $2 in many locations around the country. However, if the predictions from the IEA are right, oil investors may soon rejoice while average Americans start shelling out more money to fill their gas tanks up.

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