OPEC+ Steps into the Fray, Pushing US Gas Prices Higher
In a surprise move, OPEC+, a cartel of major oil-producing nations, announced plans to slash its collective oil output by over 1.6 million barrels per day starting in May. This reduction will have a ripple effect on global energy markets and ultimately lead to higher gas prices at the pump.
The news has sent shockwaves through the market, with Brent crude futures jumping 6% and US benchmark WTI skyrocketing 5%. Gasoline futures are also expected to rise as OPEC+ cuts begin to be passed down the supply chain. This will result in an immediate increase of around 8 cents per gallon or 3% for RBOB, the most closely watched wholesale gasoline price.
Energy expert Tom Kloza from OPIS, which tracks gas prices for AAA, warns that this move by OPEC+ could "reawaken the inflation monster" and is likely to shock the White House. According to Kloza, US gas prices are expected to surge to around $3.80-$3.90 per gallon in relatively short order, up from the current national average of $3.51.
The move by OPEC+ will also have a significant impact on the global energy landscape, particularly given the recent disruptions to energy markets caused by Russia's invasion of Ukraine. Kloza notes that while US gas prices were just below pre-pandemic levels in February 2022, this latest development suggests that prices could potentially reach record highs.
However, Kloza remains cautious, suggesting that prices will not rise as high as they did during the pandemic peak of $5 per gallon. Instead, he predicts prices may stabilize at around $3.50-$4.00 per gallon before potentially rising again if there are any further disruptions to energy production, such as a hurricane affecting the Gulf Coast.
Despite the challenges ahead, Kloza attributes OPEC+ ability to cut production and their motivation for doing so, indicating that the impact of this move will be significant in the coming months.
In a surprise move, OPEC+, a cartel of major oil-producing nations, announced plans to slash its collective oil output by over 1.6 million barrels per day starting in May. This reduction will have a ripple effect on global energy markets and ultimately lead to higher gas prices at the pump.
The news has sent shockwaves through the market, with Brent crude futures jumping 6% and US benchmark WTI skyrocketing 5%. Gasoline futures are also expected to rise as OPEC+ cuts begin to be passed down the supply chain. This will result in an immediate increase of around 8 cents per gallon or 3% for RBOB, the most closely watched wholesale gasoline price.
Energy expert Tom Kloza from OPIS, which tracks gas prices for AAA, warns that this move by OPEC+ could "reawaken the inflation monster" and is likely to shock the White House. According to Kloza, US gas prices are expected to surge to around $3.80-$3.90 per gallon in relatively short order, up from the current national average of $3.51.
The move by OPEC+ will also have a significant impact on the global energy landscape, particularly given the recent disruptions to energy markets caused by Russia's invasion of Ukraine. Kloza notes that while US gas prices were just below pre-pandemic levels in February 2022, this latest development suggests that prices could potentially reach record highs.
However, Kloza remains cautious, suggesting that prices will not rise as high as they did during the pandemic peak of $5 per gallon. Instead, he predicts prices may stabilize at around $3.50-$4.00 per gallon before potentially rising again if there are any further disruptions to energy production, such as a hurricane affecting the Gulf Coast.
Despite the challenges ahead, Kloza attributes OPEC+ ability to cut production and their motivation for doing so, indicating that the impact of this move will be significant in the coming months.
, I'm low-key hyped about what's going on with OPEC+. Like, who wouldn't want $3.90 a gallon gas?! 
But for real though, 8 cents per gallon is a big deal. I've been saying it for ages, the global economy needs some inflation to perk up 
. It's like a wake-up call for everyone. And yeah, it's gonna be interesting to see how this plays out. Tom Kloza sounds like he knows what's going on, but at the same time, his predictions are all over the place 
. Either way, I'm gonna keep an eye on this and invest in some gas station stocks 
think opec+ is trying to screw americans 
like, wont that just make things worse? 
also, dont @ me, but $3.80-$3.90 per gallon is still kinda low 
need more money in my pocket 
. It's crazy how fast prices can jump up like that. I'm kinda worried about the inflation monster too, hope it doesn't get outta control 
. Anyway, I guess we'll just have to wait and see how this plays out... *sigh*
but now im worried about fillin up my tank gas prices are gonna sky rocket 
1.6 million barrels a day is a big cut dont know how its gonna affect my budget 
hope they have a good reason for it tho maybe its better than the pandemic prices were tho 
... I just wish there was a way for everyone to win here without someone getting left behind 
. The expert guy is saying that it might not be as bad as it seems, but I'm still keeping my fingers crossed that prices don't get too crazy 
.
gas prices are already stressing people out enough without this news... OPEC+ should at least consider the impact on everyday folks like us 
and try to find a balance between production cuts and price hikes 
. I mean, it's not like I'm some kind of cheapskate or anything, but $3.80-$3.90 per gallon is a whole lot more realistic than $3.51 in my book 
. And now, gas prices are gonna skyrocket 
, especially with inflation on the rise 
. I mean, we're talkin' $3.80-$3.90 per gallon, whoa! 
OPEC+'s surprise move is gonna send shockwaves to the energy market 
. I'm not surprised they're cutting production though - it's like they're playing a big game of supply and demand 
. The fact that Russia's invasion of Ukraine has already messed with markets is a big indicator of what's to come 
. Times have changed, but does that mean we need to pay more now? 
, but it seems like this move by OPEC+ is just going to make things worse 
.
between producers and consumers and work out a better system that benefits everyone 
.
