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How oil prices will affect your summer road trip

Hitting the open road for a summer getaway is a lot more expensive this year — but some relief is in sight.

The Organization of Petroleum Exporting Countries, the multi-state cartel that controls much of the world’s oil production, said Friday that its members had agreed to scale back production cuts that first began in 2016. Based on the group’s announcement, it appears that these countries will produce 624,000 more barrels of crude oil per day.

While the announcement initially sent oil prices higher, oil markets had largely baked in expectations of an increase in production prior to Friday’s meeting. In the long-term, oil prices should go down due to the added supply — research firm Capital Economics estimated that the price per barrel LCOQ8, +3.39% will drop to $65 by the year’s end, down from its current price of roughly $75 a barrel.

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