What OPEC's surprise oil cut means for gas prices

US Gas Prices Set to Soar as OPEC Cuts Oil Production, Experts Warn

The surprise announcement by OPEC+ to slash oil production by more than 1.6 million barrels a day starting in May will soon be felt at US gas pumps, with prices potentially soaring.

According to energy analysts, the move is set to send Brent crude futures and WTI, the US benchmark, up about 6% in trading Monday. The impact on gasoline futures was immediate, with RBOB, the most closely watched wholesale gasoline price, rising by about 8 cents a gallon, or 3%, in morning trading.

Experts warn that gas prices could reach levels similar to those seen in late 2022, when oil prices surged due to Russia's invasion of Ukraine. The average US regular gas price at the time stood at $4.19 a gallon, with prices eventually peaking at $5.02 a gallon before declining slowly over several months.

However, energy analyst Tom Kloza notes that recent trends and factors such as the US Strategic Petroleum Reserve releases and improved oil production capacity have kept prices in check. The release of additional oil from the SPR could mitigate the impact of OPEC's cut, but Kloza warns that it may not be enough to offset the effects.

"A cut of 1 million barrels a day of oil by OPEC+ will not be easy to make up," he said. "But they have the ability to cut production and seem motivated to do so." Despite this, Kloza estimates prices could reach $3.80 to $3.90 per gallon in relatively short order.

By the summer, US drivers may see gas prices return to year-earlier levels, especially if there are disruptions affecting production along the Gulf Coast. However, experts caution that a hurricane or other storms could still impact prices, potentially pushing them above previous highs.

OMG have you guys seen those gas prices?! I was just filling up my tank and it felt like I was draining my wallet lol! I mean, 6% increase already? That's crazy talk! And what about the summer? Are we gonna be back to $3 bucks a gallon or what?!

I'm kinda worried about it too, especially with all the production cuts and stuff. But you know what they say "if you can't beat 'em, join 'em"... or in this case, invest in an EV . I swear, gas prices are like the ultimate wild card. One minute it's $2.50, next thing you know it's $3.00...

I'm all for OPEC cutting production and whatnot, but can't they just make some more oil or something?! It's not like we're running out of gas... well, except in the US .

Ugh, gas prices again ! I mean, I get it, OPEC's gotta make a buck, but can't they just chill for once? Like, we're already feeling the effects of inflation and whatnot, do we really need to pay more for gas too?!

And don't even get me started on the oil production cuts . I mean, I know it's all about supply and demand and all that jazz, but can't they just find a happy medium? A million barrels a day is a big deal, you guys!

I'm kinda glad Tom Kloza is keeping things in check, though . The SPR releases have been helping keep prices down, and improved production capacity is always a good thing. But, like, let's be real, $3.80 to $3.90 per gallon? That's just crazy town !

And summer's gonna bring some relief, I guess ... or maybe not, depending on the weather . Hurricanes and whatnot can still mess with prices, so we'll have to wait and see how that all plays out.

Anyway, just another thing for us to worry about, I suppose . Can't we just enjoy a nice, affordable tank of gas without worrying about it breaking the bank?!

Gas prices gonna go up big time , hope I save some cash on my road trips! They should just import more oil from other countries ️, that's what I think , but I guess it's complicated . Maybe they'll find new ways to drill or something , fingers crossed . Don't wanna see prices at those crazy 2022 levels again $4.19?! !

I'm not surprised by OPEC's decision to cut oil production... it's like they're trying to create a perfect storm for gas prices ! On one hand, they want to maintain control over the global energy market and keep prices stable for their members . But on the other hand, it's going to have a ripple effect on the US economy, especially with our growing dependence on imported oil ️.

I'm worried about what this means for regular people like me who are just trying to fill up my tank without breaking the bank . The thought of prices reaching $4-$5 per gallon is making me nervous . Of course, there's always a silver lining - if we see an increase in oil production and a release from the Strategic Petroleum Reserve, it could help mitigate the impact .

One thing that concerns me is the potential for disruptions along the Gulf Coast to impact prices again . We've seen what can happen when hurricanes or other storms affect our energy infrastructure - let's just say it's not pretty . All in all, I'm keeping a close eye on this situation and hoping for the best .

omg u guys i cant even believe this news gas prices are about to skyrocket again and i'm literally dreading summer road trips like 3 yrs ago when prices were thru the roof $5+ a gallon was the norm lol now its gonna be back up to that and more? how are we supposed to survive on that kind of pain? and dont even get me started on opecs cut i mean i get it they gotta do what they gotta do but come on 1.6 million barrels a day thats like, a lot of oil anyway im just gonna be over here sipping tea and waiting for the prices to drop back down so i can fill up without crying

gas prices? this is gonna hurt, man! been around long enough to see prices go up and down, but 6% increase in one day? that's crazy talk. ppl are already struggling with inflation, can we afford another hike? the SPR releases might help a bit, but it's not like it's gonna make a huge difference. i'm all for conservation and whatnot, but let's be real, ppl need their gas to get to work/school/etc... hope they're prepared for the jump

so i was just thinking, have you guys ever noticed how everything is connected? like with opec cutting back on oil production, it's gonna affect gas prices here, which affects the entire economy and stuff... and now experts are saying prices could go up to $3.80 a gallon? that's crazy! and what if there's a hurricane in the summer and it disrupts production again? it's like these little dominoes falling one after another but on the other hand, maybe this is just another chance for people to cut back on their gas-guzzling habits and find more sustainable ways to get around

oh man, this is not good news for road trippers! so opec just announced they're gonna cut oil production by 1.6 million barrels a day and it's already making gas prices go up like crazy . i'm talking $3.80 to $3.90 a gallon by summer? that's wild. and if there are any hurricanes or storms, who knows how bad it could get . experts say opec can cut production but it might not be enough to make up for the loss. let's hope those us SPR releases come in handy .

I'm seeing the rise of oil prices and it's gonna hit our wallets hard ! I remember when gas was around $2.50 last year . The thought of it going up to $3.80-$3.90 per gallon is crazy . Can't help but think about all the extra cash we're gonna need for summer road trips . Hopefully, those SPR releases can make a difference . But let's be real, if there are hurricanes in the Gulf Coast area...

OMG, you guys! Gas prices are about to SOAR!!! I was just checking my car's gas price and it's like $3.50 already, can't believe it's gonna go up even more . Experts saying it's like 6% or something crazy like that . Like, remember when gas prices were at $4.19 a gallon back in 2022? Now they're predicting it could get that high again . The thing is, I was just reading this thing on energy analyst Tom Kloza saying that the SPR releases might help, but like, maybe not enough . Anyway, if you live in a place near the Gulf Coast, you better be prepared for higher gas prices . Just thought I'd share

u guys, it's only May and already our gas prices are gonna skyrocket . like, I get it, OPEC+ is trying to cut production but 1.6 million barrels a day? that's a big deal! energy experts are saying we could be looking at prices similar to last year's $4.19 a gallon... or even worse . i mean, Tom Kloza is saying the SPR release might help, but it's not like it'll totally save us . what really gets me is how fast this can happen - in a few short months we could be back to pre-pandemic prices ... but then again, hurricane season starts in June so who knows?

I'm kinda worried about this OPEC cut thing... like, I get it, they gotta balance their economies and stuff, but gas prices already hurting some people? It's gonna be a rough ride for US drivers. On one hand, we need to keep the oil prices stable, but on the other hand, cutting production can lead to shortages... *shakes head* anyway, I think it's always good to be prepared, so let's all just... breathe and hope that somehow, someway, gas prices won't get too crazy this summer?

man.. this opec thingy is gonna hurt us big time think about it, they just cut oil production by like 1.6 million barrels a day... that's a huge deal! and with the us strategic petroleum reserve releasing more oil, it's not like we're gonna be okay gas prices are gonna go up, maybe even higher than those crazy highs in late 2022 $4.19 to $5.02 was nuts back then... i hope summer rolls around soon and things calm down a bit but honestly, with hurricanes and all that, it's hard to predict anything maybe we'll be back to normal prices by then?

I'M GETTING SO EXCITED BUT ALSO SUPER ANNOYED ABOUT THIS OPEC THING !! I MEAN, WHO PLANS A GAS PRICE SURGE IN MAY?!?! IT'S LIKE THEY'RE WAITING FOR US TO ALL GO OUT AND BUY BIG TRUCKS AND SUVs OR SOMETHING... ANYWAY, I GUESS IT MAKES SENSE THAT PRICES WOULD GO UP WITH OPEC CUTTING PRODUCTION. BUT $3.80 TO $3.90 PER GALLON?!?! THAT'S LIKE, A LITTLE BIT TOO MUCH FOR ME . AND DON'T EVEN GET ME STARTED ON HOW I'M SUPPOSED TO DRIVE AROUND WITH THOSE KINDS OF PRICES... MAYBE I'LL JUST HAVE TO START CARPOOLING OR SOMETHING

I'm kinda surprised they're cutting oil production by 1.6 million barrels a day... like, what's the reasoning behind this? We already had prices rising due to Russia's invasion of Ukraine, and now we're gonna see even more? And Kloza is saying that OPEC+ can cut production, but it won't be easy to make up for the loss? How much oil are they talking about here? 1.6 million barrels a day is a huge number. Are they just making this up as they go along or what's really happening?

And by the way, where's the data on this supposed cut in production? I need some sources to back this up before I start stressing about gas prices

oh noooo can't believe opec is cutting oil production this is gonna hurt my wallet so badly like $3.80 to $3.90 per gallon is way too high for me just had to refill my tank last week and it was already at $3.10 let's hope summer brings some relief and maybe some unexpected oil releases from the SPR fingers crossed

Ugh this is not good news! Gas prices are about to get slammed . I'm talking $4+ per gallon . Remember when gas was like, $2? Those were the days! Anyway, OPEC's cutting production and it's gonna affect us big time . I hope they release more oil from that reserve thingy ️ or something. It's not looking good for our wallets . But let's keep fingers crossed that prices will go back down eventually. Until then, I'm just gonna have to tighten my wallet and plan on driving less .

I'm not surprised by this news at all... like, who's shocked by higher gas prices, right? But seriously, it's crazy how quickly things can change in the oil market. Like, last year we were worried about shortages and now it's OPEC cutting production... it just goes to show how volatile it is.

I remember when I was a kid, my dad used to talk about how gas prices would "stabilize" after some crisis or another, like the Gulf Wars or something. And yeah, they did seem to calm down eventually. But we all know that's not always true...

The thing is, it's hard not to feel a little anxious when you see these huge swings in gas prices. I mean, it's like your wallet is going up and down with the oil market or something! And it's not just the money part, either – it's also how much of an impact it has on people's daily lives. Like, if you're someone who drives a lot for work or whatever, it can be a real pain in the neck.

I guess what I'm saying is... yeah, gas prices are probably gonna go up soon. And we should all just kind of... brace ourselves?

Man, I'm telling ya, gas prices are like they're stuck in some kind of time warp... You think $4.19 was bad? Wait till May when OPEC+ starts cutting production! I remember when my dad used to drive us to grandma's house for Thanksgiving and we'd always talk about how expensive gas was back then... like, what $2 a gallon?! It seems like just yesterday, right? Anyway, I'm sure it'll be alright, but still, I don't wanna have to break out the ol' piggy bank every time I fill 'er up...