The OPEC+ decision to cut oil production quotas by two million barrels a day in November could have ripple effects on the economy.
"Less supply of crude oil equals less supply of gasoline,” said oil analyst Stephen Schork. “Less supply of gasoline at current demand levels equals higher prices."
No one wants higher prices but the vote by OPEC+ could have a domino effect. Retailers are likely to pass their shipping costs to consumers which leads to broader inflation that could affect interest rates.
"When higher oil prices are putting pressure on inflation, the Federal Reserve really has to keep rate hikes going," said financial expert Elsa Lignos.
The Wall Street Journal is reporting the Biden administration may be willing to lift some sanctions against Venezuela to allow it to resume oil exports.
Plus, President Biden is expected to order the release of up to 10 million barrels of oil from the Strategic Petroleum Reserve, but that would only provide temporary relief for consumers.