US Gas Prices Set for Surge as OPEC+ Unleashes Production Cut
In a move that's sending shockwaves through the global energy market, the Organization of the Petroleum Exporting Countries (OPEC) has announced plans to slash oil production by over 1.6 million barrels per day, starting in May and running until the end of the year. The decision is expected to have an immediate impact on gasoline prices, which will be passed onto US drivers at a faster pace than oil prices.
The cut in oil production has triggered a sharp increase in both Brent crude futures and WTI, the US benchmark, with prices rising by around 6% in trading Monday. Gasoline futures are also up, with RBOB, the most closely watched wholesale gasoline price, increasing by about 8 cents per gallon – or 3% – in morning trading.
Energy analysts are warning that this move could reignite inflationary pressures, particularly at US gas pumps. Tom Kloza, global head of energy analysis for OPIS, which tracks gas prices for AAA, believes OPEC's decision "could be reawakening the inflation monster". He notes that the White House is likely to be "shocked and major-time pissed" by this move.
According to Kloza, US gas prices are already on track to rise significantly, with a national average of $3.51 per gallon as of Monday. He expects prices could reach up to $3.80 or $3.90 in relatively short order, driven by the reduced oil supply and increasing demand for gasoline.
While some experts believe that prices may not reach record levels seen in 2022 – when gas prices peaked at around $5 a gallon – others predict that US drivers may see higher prices again later this summer if there are disruptions to production along the Gulf Coast. Kloza notes, however, that even if prices do rise, they will likely stabilize before reaching year-earlier levels.
The decision by OPEC+ to cut oil production has been attributed to a desire to manage global energy markets and reduce volatility. However, for US drivers, the impact of this move is already being felt at the pump.
In a move that's sending shockwaves through the global energy market, the Organization of the Petroleum Exporting Countries (OPEC) has announced plans to slash oil production by over 1.6 million barrels per day, starting in May and running until the end of the year. The decision is expected to have an immediate impact on gasoline prices, which will be passed onto US drivers at a faster pace than oil prices.
The cut in oil production has triggered a sharp increase in both Brent crude futures and WTI, the US benchmark, with prices rising by around 6% in trading Monday. Gasoline futures are also up, with RBOB, the most closely watched wholesale gasoline price, increasing by about 8 cents per gallon – or 3% – in morning trading.
Energy analysts are warning that this move could reignite inflationary pressures, particularly at US gas pumps. Tom Kloza, global head of energy analysis for OPIS, which tracks gas prices for AAA, believes OPEC's decision "could be reawakening the inflation monster". He notes that the White House is likely to be "shocked and major-time pissed" by this move.
According to Kloza, US gas prices are already on track to rise significantly, with a national average of $3.51 per gallon as of Monday. He expects prices could reach up to $3.80 or $3.90 in relatively short order, driven by the reduced oil supply and increasing demand for gasoline.
While some experts believe that prices may not reach record levels seen in 2022 – when gas prices peaked at around $5 a gallon – others predict that US drivers may see higher prices again later this summer if there are disruptions to production along the Gulf Coast. Kloza notes, however, that even if prices do rise, they will likely stabilize before reaching year-earlier levels.
The decision by OPEC+ to cut oil production has been attributed to a desire to manage global energy markets and reduce volatility. However, for US drivers, the impact of this move is already being felt at the pump.
just saw that OPEC is cutting oil production by 1.6 million barrels/day... guess what that means? 
higher gas prices for us! $3.51 to $3.80, whoa 
not sure if it's gonna reach $5 again like in 2022, but we'll see... 
I mean what's with the formatting? It looks like it was designed in 2005 or something. Can't they update the layout to make it look decent for once? 
And don't even get me started on the comments section. It's always so cluttered and hard to navigate. I swear, I've spent more time reading through a single thread than actually contributing to the conversation. 
$3.51 a gallon? That's highway robbery right there!
. 1.6 million barrels less oil? that's huge and will definitely hurt consumers. i'm not surprised tho, opec+ is always trying to balance the market and control prices. but for US drivers, it's just a headache 
this inflation monster thing keeps coming back to haunt us
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My friends and I were talking about this at lunch yesterday and we all agreed it was gonna be a major hit to the wallet. I mean, not that we're worried or anything... but seriously, do you think gas prices will get even higher later in the summer? 
. Prices are already rising like crazy, like 6% in one day! 
And don't even get me started on how this is going to affect inflation... I mean, I know some experts say prices won't go back up to record levels, but come on, it's hard to predict the future, right? 
. Anyway, I'm keeping a close eye on this because, let's be real, who doesn't love watching their gas budget blow? 
at this point, gas prices are basically dictated by the market and opec isn't really in control 
Now it seems like OPEC's cutting production... what's going on here? 
but for us drivers, it's just gonna be a whole lot of extra cash at the pump 
in no time.
- I mean, who doesn't love paying more for gas? 
They're basically asking for a price surge and inflationary pressures... and the White House is gonna be all "major-time pissed" about it 
. Anyway, one thing's for sure: US drivers are gonna be feeling the pinch at the pump 
Come on guys, get your priorities straight and stop playing with fire! 
does anyone know what rbob means again? 
! OPEC's decision to cut oil production will definitely make us pay more at the pump 
. I don't think $3.80 or $3.90 is gonna be too much 
. Gulf Coast production disruptions could also raise prices again 
