OPEC+ will increase oil production by 100,000 barrels per day amid high prices, the group announced Wednesday.
OPEC noted that there is "severely limited availability of excess capacity." The group noted there is insufficient investment in meeting the growing demand for 2023 and beyond.
While oil prices have dropped from June when the cost per barrel reached $120, the price has remained near $100 per barrel. As more Americans are traveling this summer than in the previous two summers, gas prices surged to over $5 per gallon on average earlier this summer. But an increase in oil production seems to have tempered prices.
According to AAA, the average cost of gas dropped to $4.16 on Wednesday.
Experts say oil prices are primarily driven by supply and demand. They suggest more supply would bring down the cost of oil, and thus results in a lower price at the pump.
But AAA noted that when prices go down, demand for gas goes up.