Rewakening the ‘inflation monster,’ OPEC+ moves to send US gas prices higher | CNN Business

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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.
 
This is crazy 🤯! 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? 🤯

And honestly, I don't get why they have to single out US drivers. Like, can't they see that this is just going to hurt people who already struggle with inflation? $3.80-$3.90 per gallon is still crazy for most people! 💸 I mean, what's the logic behind this? "Oh, we're gonna make oil more expensive and watch as US drivers cry themselves to sleep at night"? 🤷‍♂️

And don't even get me started on how they always do this. Production cuts, then prices go up... it's like a broken record! Like, what did we learn from the 2022 price spike? 🙄
 
🚨 Gas prices about to get a serious boost 🚨, can't say I'm surprised tbh 💸 OPEC+ always causes problems, time to start saving up for road trips 👍
 
🚗💸 I'm not a fan of these surprise moves by OPEC+ 🤔. It's like they're playing a game of hot potato with our money 💸. I mean, who wants to pay $3.80 to $3.90 for gas? That's crazy! 😱 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 🤯. With oil production set to drop by over 1.6 million barrels per day, it's only a matter of time before US gas prices start skyrocketing 💥. The math just doesn't add up - the White House is already feeling the heat with gas prices rising rapidly 🚗. I'm no expert, but even with the SPR releases and increased production capacity, I think we're in for a wild ride 🎠. 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 💸. We're already seeing prices surge by 8 cents a gallon and it's only May! I'm not sure what the government can do at this point, but I hope they have some tricks up their sleeve 🤔. One thing for sure, drivers are in for a bumpy ride with gas prices potentially reaching pre-2022 levels 🚗💨.
 
🤔 I think this is gonna be a wild ride for gas prices, fam 😬. One day they're chillin' at $3.51 and the next, they're gonna be like $4 or more? 🤑 I'm not saying OPEC+ doesn't have the power to do that, but it's crazy how one decision can impact so many people. Like, I get it, they wanna cut production and make some bank 💸, but what about us who just wanna fill up our tanks without breaking the bank 🚗? 🤷‍♂️
 
man i dont get why they gotta cut oil production like this 🤔 its gonna make gas prices go up and affect everyone, especially with inflation already being a big deal right now 🚨 $3.80 to $3.90 a gallon sounds crazy expensive! whats the point of cutting oil if it just leads to more problems? 😕
 
🤔 "When you know better, you do better." Hopefully, the White House knows enough about economics to mitigate the effects of this OPEC+ decision on gas prices 🚗💸
 
I'm not sure what's going on with OPEC and stuff 🤔... They're cutting production by like 1.6 million barrels a day? That sounds crazy! I mean, I remember when gas was around $2.50 back in '20 and it was still pretty high compared to the good ol' days of '09 🤑. Now I'm seeing prices rising again and it's just gonna be a big pain for people trying to fill up their tanks 🚗. The White House is all like "major-time pissed" but what can they do, right? It's not like OPEC is answering to anyone 🙄...
 
Omg, I'm kinda worried about what's happening with oil production 🤯... but then I thought, maybe this is a good opportunity for people to start driving electric cars or using public transport more often? Like, we should be investing in sustainable energy anyway 😊... and who knows, maybe OPEC+ is trying to get us to switch to cleaner fuels faster? 💚 It's all about finding silver linings, right? 🌞
 
🚨 OPEC+ just slashed oil production and I'm predicting a gasoline price spike 💸🚗! They're going to mess with US drivers big time 🤯. The White House is gonna be all like "what's good?" when gas prices go up 🔥. $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 🤯! Stay tuned for some major price swings 📈🚨
 
Ugh, OPEC+ thinks they can just pull the rug out from under us and watch us scramble? 🤯 Like, I get it, oil production is a big deal, but 1.6 million barrels a day is a lot! It's gonna cause some serious inflationary storm for sure. And what really gets me is that our gov is supposed to be all about stabilizing prices, but instead they're like "meh, good luck with that". I'm calling BS on this whole thing 🤑
 
🚨🚗 OMG, can't believe OPEC+ is cutting production 🤯! I'm thinking of selling my car soon because gas prices are gonna go through the roof 💸! $3.80-$3.90 per gallon? That's crazy 😱! I remember when it was like $4.19 back in 2022... times have changed, right? 🕰️ I mean, I know they're trying to reduce inflation and all that, but still, who gets hit with the prices of gas? 🤷‍♂️ Not just drivers, but families too, you know? 👪 It's gonna be tough for people on a tight budget 🤑. Let's hope someone in the White House is like, "Hey, what about us?" 🤔
 
🤔 I'm getting a bad feeling about this... with OPEC+ cutting oil production by over 1.6 million barrels per day, it's like they're playing a game of musical chairs for gas stations everywhere! 🚗😬 They think releasing more oil from the SPR will make up for it? Sorry, but I don't buy that. We've seen what happens when OPEC makes moves before... and let me tell you, it never ends well for US drivers. 🤦‍♂️ The last thing we need is inflation going through the roof! 💸 I'm already seeing prices at $3.51 per gallon - how long before they hit $4? 🚫
 
🚨😬 I'm getting nervous about this OPEC+ move... They're basically saying "forget the budget" and all of a sudden we'll be paying $3.80-3.90 for a gallon of gas? That's crazy talk! 🤯 How are they planning to make up for it? The SPR releases will help, but not enough I think. I'm waiting for those experts to figure out how this is gonna play out...
 
🚨 $3.80+? 😱 just thinking about it gives me a headache! we need more efficient cars or alternative energy options ASAP 🚗💚 think about all those families struggling to afford gas 🤯 and now this... might be the one thing that finally makes people reconsider their daily commutes 🚫
 
Man I'm low-key freaking out about this 🤯... OPEC+ just dropped some truth bombs on us. I got a buddy who's driving from Cali to NYC for a road trip and now he's worried sick about the gas prices 💸🚗. I told him don't sweat it, we'll figure something out, but at the same time, I'm like "dude what are you gonna do?" 🤷‍♂️. The White House needs to step in and help our peeps out here or it's gonna be a wild ride 😬. I'm thinking 'bout buying gas soon just in case prices drop later 🔥. Guess we'll just have to keep an eye on this situation 👀
 
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