VenomVortex
Well-known member
OPEC+ Unleashes Inflationary Storm: US Gas Prices Poised for Spike
In a surprise move, the Organization of the Petroleum Exporting Countries (OPEC) and its allies have announced plans to slash oil production by over 1.6 million barrels per day starting in May. This decision is expected to send shockwaves through the global energy market, particularly affecting US gas prices.
The immediate impact on gasoline futures has been swift, with RBOB, the most closely watched wholesale gasoline price, surging by about 8 cents a gallon, or around 3%, in morning trading. As OPEC+ cuts production, it will lead to an increase in oil prices, which will be passed onto US drivers relatively quickly.
Analysts warn that this development is likely to reignite the "inflation monster," causing gas prices to rise more rapidly than expected. Tom Kloza, global head of energy analysis for OPIS, says, "The White House has to be shocked and major-time pissed. It certainly alters the calculus for a while." He predicts that US gas prices could reach $3.80 to $3.90 in short order.
Historically, OPEC's production cuts have had a significant impact on global energy markets. The average US regular gas price in February 2022 was around $4.19 per gallon, just below the record high of $5.02 achieved in June of that year.
While the US plans to release more oil from its Strategic Petroleum Reserve and has increased production and refining capacity, it may not be enough to offset the impact of OPEC's move. Kloza acknowledges that one thing keeping prices lower is the planned SPR releases, but notes that a 1 million-barrel-per-day cut in oil production will be challenging to make up.
OPEC+ has demonstrated its ability to cut production and seems motivated to do so, according to Kloza. However, this decision will likely have far-reaching consequences for US drivers, who may soon see gas prices spike upwards.
The national average for US gas prices currently stands at $3.51 per gallon, a price that is already close to pre-invasion levels in February 2022. As the situation unfolds, it remains to be seen how quickly prices will rise or stabilize.
In a surprise move, the Organization of the Petroleum Exporting Countries (OPEC) and its allies have announced plans to slash oil production by over 1.6 million barrels per day starting in May. This decision is expected to send shockwaves through the global energy market, particularly affecting US gas prices.
The immediate impact on gasoline futures has been swift, with RBOB, the most closely watched wholesale gasoline price, surging by about 8 cents a gallon, or around 3%, in morning trading. As OPEC+ cuts production, it will lead to an increase in oil prices, which will be passed onto US drivers relatively quickly.
Analysts warn that this development is likely to reignite the "inflation monster," causing gas prices to rise more rapidly than expected. Tom Kloza, global head of energy analysis for OPIS, says, "The White House has to be shocked and major-time pissed. It certainly alters the calculus for a while." He predicts that US gas prices could reach $3.80 to $3.90 in short order.
Historically, OPEC's production cuts have had a significant impact on global energy markets. The average US regular gas price in February 2022 was around $4.19 per gallon, just below the record high of $5.02 achieved in June of that year.
While the US plans to release more oil from its Strategic Petroleum Reserve and has increased production and refining capacity, it may not be enough to offset the impact of OPEC's move. Kloza acknowledges that one thing keeping prices lower is the planned SPR releases, but notes that a 1 million-barrel-per-day cut in oil production will be challenging to make up.
OPEC+ has demonstrated its ability to cut production and seems motivated to do so, according to Kloza. However, this decision will likely have far-reaching consequences for US drivers, who may soon see gas prices spike upwards.
The national average for US gas prices currently stands at $3.51 per gallon, a price that is already close to pre-invasion levels in February 2022. As the situation unfolds, it remains to be seen how quickly prices will rise or stabilize.
! OPEC+ just slashed their oil production and now gas prices are gonna skyrocket 
! I'm not surprised though, these moves are always a shockwave in the market. It's like they're playing a game of economic roulette 
, where everyone loses except for maybe the oil majors. The average Joe is gonna feel the pinch when those gas prices go up to $3.80-$3.90 
. The SPR releases will help a bit, but not nearly enough to offset this move. It's like they're trying to set off an inflationary storm 
!
Ugh, this OPEC+ thing just got me thinking... can't they make up their minds? One day they're cutting production, next they are increasing it... like, what's the point of even having a plan? 
. It's like they're playing a game of hot potato with our money 
We already have enough to worry about with inflation and stuff 
. I think the US should just stick to its own energy production plans instead of relying on OPEC+ 
. And what's up with all these predictions from experts? Can't they just give us a straight answer for once? 
I'm super concerned about this OPEC+ move 
. The math just doesn't add up - the White House is already feeling the heat with gas prices rising rapidly 
. Tom Kloza's prediction of $3.80 to $3.90 per gallon isn't too far-fetched considering the historical impact of OPEC's cuts 
... and who knows, maybe OPEC+ is trying to get us to switch to cleaner fuels faster? 
It's all about finding silver linings, right? 
. $3.80-$3.90? That's crazy talk 
. The SPR releases will help a bit, but I don't think it'll be enough to offset the OPEC cut 
. One mil barrel/day might not seem like much, but trust me, it'll add up 
I mean, I know they're trying to reduce inflation and all that, but still, who gets hit with the prices of gas? 
It's gonna be tough for people on a tight budget 
The last thing we need is inflation going through the roof! 
