US Gas Prices Set for Sharp Rise as OPEC+ Cuts Production
A surprise move by the Organization of the Petroleum Exporting Countries (OPEC) and its allies has sent shockwaves through global energy markets, with US gas prices expected to skyrocket in the coming months. The group announced on Sunday that it will slash oil production by over 1.6 million barrels a day starting May, in an effort to stabilize prices and reduce supply.
The news had a significant impact on gasoline futures, which surged up about 8 cents a gallon or 3% in morning trading. This increase will likely be passed onto US drivers, causing gas prices to rise even faster. Tom Kloza, global head of energy analysis for OPIS, a leading provider of data and insights on gas prices, warned that the White House is "major-time pissed" over the move.
According to Kloza, OPEC's decision could send US gas prices up to $3.80-$3.90 per gallon in relatively short order, surpassing current national average prices of $3.51. However, he cautioned that prices may not reach record levels from 2022, which peaked at around $5.02 a gallon on June 14, due to the US government's plans to release oil from its Strategic Petroleum Reserve and the country's increased oil production and refining capacity.
However, Kloza noted that a cut of 1 million barrels a day of oil by OPEC+ is not an easy adjustment for the global market. "They have ability to cut production and they seem motivated to do so," he said. Nevertheless, US drivers may still face price increases, especially if there are any disruptions in production along the Gulf Coast, which could be exacerbated by hurricanes or other extreme weather events.
Historically, gas prices in the US have been volatile, with periods of sharp increase followed by rapid decline. For example, after Russia's invasion of Ukraine in February 2022, gas prices surged to record levels before falling every day over several months due to concerns about a potential recession. On Monday, gas prices were just below their February 23, 2022 average of $3.53 per gallon.
Overall, the OPEC+ decision has injected uncertainty into global energy markets, with US gas prices expected to take a hit in the coming weeks and months.
A surprise move by the Organization of the Petroleum Exporting Countries (OPEC) and its allies has sent shockwaves through global energy markets, with US gas prices expected to skyrocket in the coming months. The group announced on Sunday that it will slash oil production by over 1.6 million barrels a day starting May, in an effort to stabilize prices and reduce supply.
The news had a significant impact on gasoline futures, which surged up about 8 cents a gallon or 3% in morning trading. This increase will likely be passed onto US drivers, causing gas prices to rise even faster. Tom Kloza, global head of energy analysis for OPIS, a leading provider of data and insights on gas prices, warned that the White House is "major-time pissed" over the move.
According to Kloza, OPEC's decision could send US gas prices up to $3.80-$3.90 per gallon in relatively short order, surpassing current national average prices of $3.51. However, he cautioned that prices may not reach record levels from 2022, which peaked at around $5.02 a gallon on June 14, due to the US government's plans to release oil from its Strategic Petroleum Reserve and the country's increased oil production and refining capacity.
However, Kloza noted that a cut of 1 million barrels a day of oil by OPEC+ is not an easy adjustment for the global market. "They have ability to cut production and they seem motivated to do so," he said. Nevertheless, US drivers may still face price increases, especially if there are any disruptions in production along the Gulf Coast, which could be exacerbated by hurricanes or other extreme weather events.
Historically, gas prices in the US have been volatile, with periods of sharp increase followed by rapid decline. For example, after Russia's invasion of Ukraine in February 2022, gas prices surged to record levels before falling every day over several months due to concerns about a potential recession. On Monday, gas prices were just below their February 23, 2022 average of $3.53 per gallon.
Overall, the OPEC+ decision has injected uncertainty into global energy markets, with US gas prices expected to take a hit in the coming weeks and months.
OMG, can you believe it? OPEC just slashed oil production by 1.6 million barrels a day and now everyone's freaking out about those rising US gas prices 
! I mean, Tom Kloza is saying $3.80-$3.90 per gallon? That's like, totally insane! 
But at the same time, it's not entirely surprising. Like, we all know OPEC has some serious power when it comes to oil supplies 
.
. And can you imagine if there are any hurricanes or other extreme weather events affecting production? That would just push prices even higher 
. On the bright side, maybe this means we'll see some changes in energy policy or infrastructure development to reduce our reliance on fossil fuels 
.
what if there are any disruptions in production? like with hurricanes or something? that would just be a total disaster 
. I'm not saying I'm a economist or anything, but I just think this is all so unfair 
. anyone else having to deal with this? 
. So yeah, I think $3.80-$3.90 per gallon by summer? Not out of the question 
.
. And what really gets me is that the government is trying to calm everyone down with their Strategic Petroleum Reserve release, but let's be real, that's just a Band-Aid solution. The US has been racking up debt and producing more oil than ever before, so why are we still relying on price fixes? 
I'm predicting $4+ per gallon by summer, mark my words 
I'm so frustrated with these oil production cuts! Like, can't they just chill? 
. What they need to do is actually address the underlying issues, like investing in renewable energy and reducing consumption 
. But hey, who needs that when you can make a quick buck off of price gouging? 
so i'm thinking, like, opec's move is def gonna affect us drivers big time... like, we're talkin' $3.80-$3.90 per gallon? that's crazy! 
still, opec's decision has me feeling kinda anxious about my gas bill... 
... but that doesn't necessarily mean we won't feel the pinch at the pump 
. Can we please just get some more efficient cars or something? 
. OPEC+ just announced that they're cutting production by 1.6 million barrels a day starting May, and trust me, this is gonna affect us all 
.