US gas prices are set to rise as OPEC+ announces a 1.6 million barrel daily production cut, which will soon be felt at the pump.
The surprise move by the oil-producing cartel has sent shockwaves through the global energy market, with Brent crude futures and WTI, the US benchmark, surging by about 6% in trading on Monday. Gasoline futures are also up, with RBOB, the most closely watched wholesale price, rising by about 8 cents a gallon or 3%.
Tom Kloza, global head of energy analysis for OPIS, believes OPEC's move will "reawaken the inflation monster" and has left the White House "shocked and major-time pissed." He expects US gas prices to jump to around $3.80 to $3.90 in relatively short order.
While some analysts believe that oil prices may stabilize at current levels, Kloza thinks otherwise, stating that US drivers could see prices above year-earlier levels by the end of summer, particularly if there are disruptions to production along the Gulf Coast due to hurricanes or other storms.
The impact of OPEC's move on gas prices is still being felt from last year's Russia-Ukraine crisis, when prices reached a record $5.02 a gallon in June before slowly declining over three months. Today, US gas prices stand at around $3.51, just below the average price of February 2022.
Kloza credits the US Strategic Petroleum Reserve and increased oil production and refining capacity for keeping prices stable since then, but notes that OPEC's cut will be difficult to offset.
The surprise move by the oil-producing cartel has sent shockwaves through the global energy market, with Brent crude futures and WTI, the US benchmark, surging by about 6% in trading on Monday. Gasoline futures are also up, with RBOB, the most closely watched wholesale price, rising by about 8 cents a gallon or 3%.
Tom Kloza, global head of energy analysis for OPIS, believes OPEC's move will "reawaken the inflation monster" and has left the White House "shocked and major-time pissed." He expects US gas prices to jump to around $3.80 to $3.90 in relatively short order.
While some analysts believe that oil prices may stabilize at current levels, Kloza thinks otherwise, stating that US drivers could see prices above year-earlier levels by the end of summer, particularly if there are disruptions to production along the Gulf Coast due to hurricanes or other storms.
The impact of OPEC's move on gas prices is still being felt from last year's Russia-Ukraine crisis, when prices reached a record $5.02 a gallon in June before slowly declining over three months. Today, US gas prices stand at around $3.51, just below the average price of February 2022.
Kloza credits the US Strategic Petroleum Reserve and increased oil production and refining capacity for keeping prices stable since then, but notes that OPEC's cut will be difficult to offset.
3.80 to $3.90?? my wallet is already cryin just thinkin bout it 
i dont think i can afford that every time i fill up at the pump 
and Kloza is right too, if theres a hurricane or somethin on the gulf coast its gonna get way worse 
this is like a classic case study on the butterfly effect, you know? one little move by OPEC+ can send shockwaves through the whole market. it's all about supply and demand, bro. when they cut production, prices go up. simple. but the thing is, we're not just talking about gas prices here, we're talking about inflation, too. so, if we don't keep an eye on things, we might see prices skyrocketing again 
. it's like, we should be learning from history, you know? what happened last year when prices were at a record high? and now, with OPEC's move, we're back to worrying about it all over again 
. but the thing is, we can't just sit back and wait for things to happen, we gotta be proactive, too 
.
. But seriously, $3.80 to $3.90? That's like asking if you can afford to buy your dream car after just getting a new one 
. And Tom Kloza, man... he sounds like a superstitious grandma who thinks the apocalypse is coming 
. "Reawaken the inflation monster"? Sounds more like "Send in the oil prices to rise!" 
gas prices are gonna jump up like crazy! $3.80 a gallon in no time 
not sure how the US is gonna take it but i guess we'll all just have to get used to driving around with bigger tanks 
anyone got tips on how to save some $$$ on those higher gas prices? 
I'm curious to see how US drivers are gonna react when prices start creeping up towards $4 or more this summer 
. We'll have to keep an eye on things and see what happens next 
I remember when gas was around $2.50 back in 2019 lol what a difference 6 years make 
hurricanes or not, prices are gonna go up 
especially if production gets disrupted 
. So now we gotta deal with higher gas prices? Not again! 
And what's up with these price surges? Can't we get some stability here? 
. One thing for sure, it's going to affect people's wallets - time to cut back on driving or fill up early 
I'm not surprised by this news at all... my poor wallet is still recovering from last year's price spikes! 
How are families supposed to cope with this? We're already stretching every dollar... an extra $0.50-$1.00 a gallon could be devastating for some families 
.
! i just hope our government can find some way to mitigate the impact or somethin 
. but honestly, i'm not sure how much more of these price hikes we can take 
especially with summer coming up, can't we just keep our energy costs low and manageable for a bit longer? 
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. They're probably trying to control the narrative and keep us from focusing on the real issue: global warming 
. I mean, think about it, with prices going up, people are gonna start looking for alternative energy sources, like solar or electric cars 
. That just shows they're in bed with OPEC, you know 
. I bet Tom Kloza's got some strings attached to his paycheck 
... what if hurricanes or storms disrupt production on the gulf coast?