US Gas Prices Poised for Sharp Increase as OPEC+ Cuts Oil Production
The Organization of the Petroleum Exporting Countries (OPEC) has announced a surprise move to slash oil production by over 1.6 million barrels per day, starting in May and running through the end of the year. The news sent shockwaves through the global energy market, with Brent crude futures rising about 6% and WTI futures jumping around 5%. As a result, gasoline prices in the US are expected to surge, with wholesale gas prices up around 8 cents per gallon - a 3% increase.
Analysts say that OPEC's move is likely to reignite inflation concerns, particularly in the US. Tom Kloza, global head of energy analysis at OPIS, warned that the White House will be "major-time pissed" about the development, as it alters the economic calculus. With US gas prices currently standing at $3.51 per gallon, Kloza predicts that prices could rise to around $3.80-$3.90 in relatively short order.
While some experts argue that the US won't see record-high gas prices like those reached in June 2022, when oil costs $5 a barrel, others caution that the market is highly volatile and subject to various disruptions, such as hurricane-related storms affecting production along the Gulf Coast. By the end of summer, Kloza believes that US drivers could be back above year-earlier prices.
Notably, despite concerns about potential price spikes, gas prices in the US are still relatively low compared to a year ago - with an average of $4.19 per gallon at that time. However, analysts like Kloza point out that even at lower levels, such as $3.51, US gas prices were still above pre-war levels, driven by Russia's invasion of Ukraine and the resulting supply chain disruptions.
The Organization of the Petroleum Exporting Countries (OPEC) has announced a surprise move to slash oil production by over 1.6 million barrels per day, starting in May and running through the end of the year. The news sent shockwaves through the global energy market, with Brent crude futures rising about 6% and WTI futures jumping around 5%. As a result, gasoline prices in the US are expected to surge, with wholesale gas prices up around 8 cents per gallon - a 3% increase.
Analysts say that OPEC's move is likely to reignite inflation concerns, particularly in the US. Tom Kloza, global head of energy analysis at OPIS, warned that the White House will be "major-time pissed" about the development, as it alters the economic calculus. With US gas prices currently standing at $3.51 per gallon, Kloza predicts that prices could rise to around $3.80-$3.90 in relatively short order.
While some experts argue that the US won't see record-high gas prices like those reached in June 2022, when oil costs $5 a barrel, others caution that the market is highly volatile and subject to various disruptions, such as hurricane-related storms affecting production along the Gulf Coast. By the end of summer, Kloza believes that US drivers could be back above year-earlier prices.
Notably, despite concerns about potential price spikes, gas prices in the US are still relatively low compared to a year ago - with an average of $4.19 per gallon at that time. However, analysts like Kloza point out that even at lower levels, such as $3.51, US gas prices were still above pre-war levels, driven by Russia's invasion of Ukraine and the resulting supply chain disruptions.
just think about it, a 8 cent per gallon increase already? it's like, what even is that? 
and people are saying us gas prices will go back to pre-war levels? that's like going from $3.51 to like...$2.50 or something 
but at the same time, we gotta consider that it was like super expensive before, so maybe we should be grateful for a small increase lol. anyway, can't wait to see how this all plays out 
OPEC's move is definitely gonna cause some trouble for American drivers... I was just thinking about how crazy gas prices are in the US right now 
. One thing's for sure, though: US drivers are gonna be feeling the pinch a bit more soon 
I'm not surprised tho cuz OPEC did announce they're cutting production 
which means less oil will be available on the market... it's only a matter of time before prices rise 
. Now it's at $3.51 and people are saying it could go up to $4.00 easy 
.
. It's just weird, you know? Like, one minute we're celebrating lower gas prices and the next, boom! Prices skyrocket again 
. Can't we just have stability in the energy market for once? 
! It makes sense that prices are gonna jump since OPEC cut production, but I'm also thinking about how hurricane season can mess with supply chains and cause prices to spike even more 
.
... but for now, I'll just be keeping an eye on this OPEC situation 
i feel bad for the US drivers who are gonna be hit with these price hikes 
at least gas prices r still relatively low compared to last year though 
maybe we can all just try to stay positive and make some adjustments to our spending habits 
