Oil And Gas Prices Surge As Saudis Extend Production Cut

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Oil prices have surged to the highest levels in months after Saudi Arabia announced that it would extend its production cuts for another month. Oil prices on Monday were about $82 per barrel, the highest since mind-April’s spike at $83.  As a result, gas prices rose to an average of $3.89 on Monday, up 8% from last month.  Quincy Krosby, chief global strategist for LPL Financial, said, “If gasoline prices continue to climb higher, the Fed will find it difficult to declare that inflation has peaked given the importance of gasoline prices with regard to consumer perceptions of long-term inflation.”  The Federal Reserve raised the interest rate in July for the 11th time since March 2022 bringing it to its highest since 2001. Krosby said this is “the antithesis of what the Fed wants to see as it tries to quell the last vestiges of inflationary pressures and declare victory.”