U.S. drivers look to curb gas spike impact

Major oil-producing countries led by Saudi Arabia said they’re cutting supplies of crude — again. This time, the decision was a surprise and is underlining worries about where the global economy might be headed. Stock markets around the world are mixed Monday, as a jump in oil prices threatens to add upward pressure on inflation.

The decision by oil producers, many of them in the OPEC oil cartel, to cut production by more than 1 million barrels a day comes after prices for international benchmark crude slumped amid a slowing global economy that needs less fuel for travel and industry. It adds to a cut of 2 million barrels per day announced in October.

Between the two cuts, that’s about 3% of the world’s oil supply. In the U.S., gasoline prices are highly dependent on crude, which makes up about half of the price per gallon. Lower oil prices have meant U.S. drivers have seen the average price fall from records of over $5 per gallon in mid-2022 to $3.50 per gallon this week, according to motor club AAA.