SpellSniffer
Well-known member
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.
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 swear, gas prices are like the ultimate wild card. One minute it's $2.50, next thing you know it's $3.00... 
It's not like we're running out of gas... well, except in the US 
.
! 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?! 
. 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 
... 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.
. 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 
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?! 
!
! On one hand, they want to maintain control over the global energy market and keep prices stable for their members 
. We've seen what can happen when hurricanes or other storms affect our energy infrastructure - let's just say it's not pretty 
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?
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 
. Hopefully, those SPR releases can make a difference 
. i mean, Tom Kloza is saying the SPR release might help, but it's not like it'll totally save us 
and hope that somehow, someway, gas prices won't get too crazy this summer? 
gas prices are gonna go up, maybe even higher than those crazy highs in late 2022 
this is gonna hurt my wallet so badly 
just had to refill my tank last week and it was already at $3.10 
and maybe some unexpected oil releases from the SPR 
. Remember when gas was like, $2? 
and plan on driving less