Four countries agree to freeze oil production to improve market

FILE - In this Thursday, July 16, 2015, file photo, a customer re-fuels her car at a Costco in Robinson Township, Pa. The plunging price of oil in 2016 is dragging stock markets to their worst start to a year ever, even though low fuel prices are great for consumers and most companies. (AP Photo/Gene J. Puskar, File)

CHICOPEE, Mass. (WWLP) – Gas prices are at a 13 year low, but they might not stay that way for long.

An oversupply of oil in the global marketplace has caused gas prices to drop over the past year. Four major oil producers are worried about the negative impact it will have on their economies.

Four countries announced an agreement Tuesday in an effort to drive the price of oil back up.

Saudi Arabia, Qatar, Russia and Venezuela have agreed to freeze oil production at its January levels, if other oil-producing countries do the same. The Saudi oil minister said their goal is to improve the market by creating a stable oil price.

American International Business Professor Gary Lefort told 22News if everything works as planned, oil would naturally become more expensive, “If it really gets cold over the next month or two, if world economies start increasing their demand for oil, than the result is the price of oil is going to start going back up.”

Lefort said in 2014, a barrel of oil cost about $100 dollars. Over the past year and a half, the price has plummeted to about $33 dollars a barrel.

If the agreement drives the price of oil back up, the price of gas will also become more expensive.

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