Oil prices are at 'their highest in seven years,' pushing prices at the pump higher while supply is low

Nationwide gas prices are skyrocketing as energy demand is increasing, regardless of the ability of supply levels to keep up.

Currently, oil production has not kept pace with the high demand as oil companies benefit from the soaring prices — an opportunity to earn, which they had not enjoyed at the height of the COVID-19 pandemic.   

“Last week saw oil prices advance to their highest in seven years, with a barrel of West Texas Intermediate crude oil surpassing the critical $80 per barrel level,” Head of Petroleum Analysis for GasBuddy Patrick De Haan said, according to MLive. “The nation’s gas prices were also pushed to their highest since 2014, all on OPEC’s decision not to raise production more than it already agreed to in July.”

Though fall is normally when gas prices start evening out, the nationwide average was $3.27 a gallon, which is almost double what the cost was after bottoming out in April 2020 at an average of $1.77 a gallon, according to CNN Business.

Due to the pandemic, energy costs were low in the spring of 2020, but after economies began to reopen, the prices rose and energy supplies were unable to keep up with demand.

Currently, motorists pay $50 on average to fill a 15-gallon tank of gas, which is an increase of $11 from the highest prices in January.