US Gas Prices Expected to Soar as OPEC+ Cuts Production, Fed Up with White House's Inflation Frustration
A surprise move by the Organization of the Petroleum Exporting Countries (OPEC+) has sent shockwaves through the global energy market, setting US gas prices on a trajectory for significant increases. Effective May, the cartel will slash oil production by over 1.6 million barrels per day, with production levels remaining low until the end of the year.
The reduction in oil supplies is expected to have an immediate impact on gasoline futures, which are likely to be passed onto US drivers more quickly than a spike in oil prices. As a result, wholesale gasoline prices surged by around 8 cents a gallon, or 3%, in morning trading. This development has sent US gas prices soaring, with the national average now standing at $3.51 per gallon.
According to energy analyst Tom Kloza of OPIS, the move by OPEC+ is "rewakening the inflation monster," and will likely send US gas prices towards $3.80 or $3.90 in the coming weeks. However, Kloza also notes that the US is unlikely to see record levels like those reached last year, when gas prices hit a staggering $5.02 per gallon.
Kloza credits the planned releases from the US Strategic Petroleum Reserve, as well as increased domestic oil production and refining capacity, for keeping prices under control in recent months. However, the OPEC+ move poses a significant challenge to these efforts, with Kloza warning that it will be difficult to offset the reduced supply of oil.
Despite this, Kloza remains cautiously optimistic that US gas prices may eventually stabilize or even decline if production disruptions along the Gulf Coast are limited by bad weather. With hurricane season approaching, however, he notes that prices could surge once again if storms disrupt oil supplies.
The news has sent a message to Washington, with energy experts warning of "major-time frustration" for the White House over OPEC's decision. As gas prices continue to rise, one thing is clear: American drivers are bracing themselves for a potentially costly summer at the pump.
A surprise move by the Organization of the Petroleum Exporting Countries (OPEC+) has sent shockwaves through the global energy market, setting US gas prices on a trajectory for significant increases. Effective May, the cartel will slash oil production by over 1.6 million barrels per day, with production levels remaining low until the end of the year.
The reduction in oil supplies is expected to have an immediate impact on gasoline futures, which are likely to be passed onto US drivers more quickly than a spike in oil prices. As a result, wholesale gasoline prices surged by around 8 cents a gallon, or 3%, in morning trading. This development has sent US gas prices soaring, with the national average now standing at $3.51 per gallon.
According to energy analyst Tom Kloza of OPIS, the move by OPEC+ is "rewakening the inflation monster," and will likely send US gas prices towards $3.80 or $3.90 in the coming weeks. However, Kloza also notes that the US is unlikely to see record levels like those reached last year, when gas prices hit a staggering $5.02 per gallon.
Kloza credits the planned releases from the US Strategic Petroleum Reserve, as well as increased domestic oil production and refining capacity, for keeping prices under control in recent months. However, the OPEC+ move poses a significant challenge to these efforts, with Kloza warning that it will be difficult to offset the reduced supply of oil.
Despite this, Kloza remains cautiously optimistic that US gas prices may eventually stabilize or even decline if production disruptions along the Gulf Coast are limited by bad weather. With hurricane season approaching, however, he notes that prices could surge once again if storms disrupt oil supplies.
The news has sent a message to Washington, with energy experts warning of "major-time frustration" for the White House over OPEC's decision. As gas prices continue to rise, one thing is clear: American drivers are bracing themselves for a potentially costly summer at the pump.
i mean we were already worried about inflation and now they're making things worse... its gonna be a tough summer for us americans, esp with hurricane season coming up 
. i hope they do get some relief from the reserve or something but ugh, those $3.80+ prices are looking more likely by the day 
.
. Just what we needed, more reasons to be annoyed about our fuel bills this summer. I mean, who needs inflation under control when you can just raise gas prices willy-nilly? 
It's not like it's going to hurt anyone's wallet or anything... yeah right 
. Can't believe the Fed is stuck in "inflation frustration" mode again 
. Shouldn't they be, like, doing something about it instead of just sitting around twiddling their thumbs? 
. And what's with this whole inflation thing? It's just like, our economy is so out of whack right now 
. Anywayz, I guess we'll just have to deal with it and hope for the best 
.
Like, who thought it was a good idea to cut production like that? Now we're stuck with higher prices and a lot of uncertainty. I'm trying to plan my summer road trips and it's already stressing me out 
. What's going on with OPEC+ anyway? Can't they just communicate better or something? 
CRAZY 
too high 
and it's only gonna go up 
from here 
. I'm thinking of stocking up on gas 
ASAP 
, but at the same time 
, I hope those big storms 
won't ruin our summer vibes 
! 
It's like, we get it OPEC+ 
? 
