Rewakening the ‘inflation monster,’ OPEC+ moves to send US gas prices higher | CNN Business

Oil Producers' Decision Sends Shockwaves Through US Gas Prices, Experts Predict Higher Inflationary Pressures.

In a move that has sent shockwaves through the global energy market, OPEC+ announced on Sunday it would cut oil production by over 1.6 million barrels per day, starting in May and running through the end of the year. This significant reduction is expected to be felt at US gas pumps, with experts predicting a sharp increase in prices.

The decision sent Brent crude futures, the global benchmark, and WTI, the US benchmark, up by around 6% in trading on Monday. Gasoline futures also saw a significant spike, with RBOB, the most closely watched wholesale gasoline price, rising by about 8 cents per gallon, or 3%, in morning trading.

According to Tom Kloza, global head of energy analysis for OPIS, OPEC's decision is "rewaking the inflation monster," and the White House must be "shocked and major-time pissed." He predicts that US gas prices could rise to around $3.80 to $3.90 per gallon in relatively short order.

Kloza also notes that while the national average for US gas prices stood at $3.51 on Monday, prices have been trending downward since last year's record high of $5.02 per gallon. However, he acknowledges that OPEC's decision may make it difficult to return to these lower levels.

The US Strategic Petroleum Reserve (SPR) is expected to play a crucial role in mitigating the impact of OPEC's production cut. Kloza points out that the SPR has already released oil to stabilize prices and reduce demand for gasoline. However, with a significant reduction in global supply, he believes that prices could rise again if there are disruptions in US or global production.

According to data from AAA, gas prices were just below their pre-pandemic levels on February 23, 2022, the day before Russia's invasion of Ukraine. While experts predict that prices will not reach these record levels, they may still be higher than where they were last year at this time.

Overall, OPEC's decision to cut oil production has sent a clear signal that global energy markets are facing increased inflationary pressures. As the US economy continues to recover from the pandemic, it remains to be seen how prices will respond to this significant reduction in supply.

man... opecs gotta keep calm lol i mean dont get me wrong its not good for us americans but like they got a point we cant just keep pumping oil forever and expect the planet to be fine plus with the whole russia ukraine thing, its like a big mess over there. anyway, i hope the white house is ready for some higher gas prices 3.80 bucks a gallon? not so bad lol

so i'm all for us being more independent and less reliant on foreign oil, but cutting production by 1.6 million barrels a day is a big deal... i mean, it's like they're sending a message that we can just handle whatever comes our way without any help from our international friends

and yeah, the inflation monster is real, but i'm not sure if $3.80 to $3.90 per gallon is that bad, like, people still need to fill up their tanks every now and then... maybe we should focus on getting our own oil refineries back online instead of just relying on imports

i also wonder what's going to happen when summer rolls around and everyone's road trips are in full swing... it's gonna be interesting to see how this all plays out

Oil producers are at it again ! I'm not surprised that OPEC's decision is sending shockwaves through the energy market, but it's still a bummer for those on a budget . With prices expected to rise, we can expect to see higher inflationary pressures and potentially impact everyday life .

I do hope the White House is prepared to address this issue . It's not like we haven't seen this before , but still... 3.80 to $3.90 per gallon? That's steep!

And good on the US Strategic Petroleum Reserve for stabilizing prices and reducing demand . Fingers crossed that it can mitigate the impact of OPEC's production cut .

I'm keeping an eye on this situation, but I'm also aware that we've been here before . Let's just hope that this time around, things won't be as bad .

I'm not surprised by OPEC's decision, but the impact on US gas prices is gonna be huge ! I was reading that gas prices were just below pre-pandemic levels last year, so it's like, we've made some progress, right? But now this production cut comes in and just... boom . Experts are saying inflationary pressures, like, for real? It's gonna be interesting to see how the US economy handles this. We gotta keep an eye on that SPR, though - it's like our own little safety net . I'm a bit worried about prices rising again if there are any disruptions in production . Guess we'll just have to wait and see how things play out .

man... this is crazy news 1.6 million barrels a day? that's like, whoa! and now gas prices are gonna skyrocket I mean, I know OPEC+ has been trying to control the market and stuff, but come on, do they have to be so drastic? it's already tough for people to afford groceries and other essentials, let alone gas

and yeah, the White House is probably gonna be all "major-time pissed" but what can they really do? I mean, we're talking about global supply here... it's like trying to hold back a tidal wave

anyway, I'm still kinda nostalgic for when gas was cheaper, you know? like before 2014 or something those were the days where you could fill up your tank and not break the bank

I'm feeling kinda anxious about this news . A 6% increase in oil prices is a big deal, and it's gonna hit ppl hard, especially those on a tight budget . The economy was already recovering, but now this might set us back. I'm thinking about all the small businesses that have to keep their prices stable or risk losing customers . On the bright side, OPEC+ did decide to cut production in May, so we might get some relief later on . The US SPR is also ready to help stabilize things. Fingers crossed!

omg u guys i cant even believe whats happening with gas prices!! theyre like seriously gonna hit $3.80-$3.90 per gallon now?!?! that's insane!!! i was just thinking yesterday that prices were getting back down to pre-pandemic levels and now this opec decision has thrown a wrench in the works. i'm all about saving money on gas, but like omg these prices are gonna be crazy expensive!!

I'm thinking, if they're really gonna cut production by 1.6 million barrels per day, it's like they're trying to break the bank . I mean, gas prices are already kinda high, and now we got this new info that's just gonna send shockwaves through the market. I don't blame people for being worried about inflation - it's like, what's gonna happen next? Are we gonna see a rise in prices at the pump?

I'm also curious, why did they choose to cut production now? Is it because of some new global events or just cause? And what about all those countries that are super reliant on oil exports - how are they gonna handle this new reality?

I'm freaking out right now like is $3.80 gonna be the new normal?! I mean I know we're all about being prepared for inflation and all, but this seems crazy! Anyone else feeling like their wallet's getting punched? We just got back to pre-pandemic gas prices and now OPEC's cutting production again... what's going on with our energy game?!

OMG, I'm freaking out about gas prices ! So OPEC is cutting oil production and that's gonna send shockwaves through the market... like, what?! They're predicting US gas prices could go up to $3.80-$3.90 per gallon? That's crazy! And they think it might be hard for us to get back down to those pre-pandemic levels from last year? What happened to all that oil we released from the SPR? Do you think we'll ever see gas prices like $5.02 again? Those were, like, a million dollars per gallon! My wallet is already crying just thinking about it

The US is gonna see some crazy gas price swings . The OPEC+ decision is def a shockwave for the global energy market . If we're lookin at the numbers, Brent crude futures are up 6% and WTI is up 5%. Gasoline futures are poppin' too, with RBOB up 3% in just one day!

According to OPIS, this production cut is gonna push inflation up. The White House might be worried 'bout $3.80 to $3.90 per gallon ️. But here's the thing - gas prices have been trending down since last year's record high of $5.02 .

The SPR released oil in Feb 2022 when Russia invaded Ukraine, and now it's doin' it again . Kloza thinks that's a good sign. If there are disruptions in production, though...

Gas prices were just below pre-pandemic levels on Feb 23rd . They might not hit those record highs, but they're def gonna be higher than last year at this time .

Here's the data:
- Brent crude futures up 6%
- WTI up 5%
- RBOB up 3%
- OPEC+ production cut: 1.6 million barrels per day ️

These stats show just how volatile gas prices can be !

OMG you guys I'm freaking out about this news its like the oil producers just decided to rip off America and watch as we all go bankrupt I mean what even is the point of having a reserve if you're just gonna sell it all off for some fancy profit margin? and dont even get me started on the SPR that thing is like the ultimate scapegoat for everything wrong with the economy its supposed to be this magical solution that keeps prices low but really its just a bandaid on a bullet wound

and the numbers are wild $3.80 to $3.90 per gallon whoa thats insane and I know some people are gonna say its not that bad compared to pre-pandemic levels but like come on we're talking about a 30% increase here that may not seem like a lot to you but when youre a single mom or a struggling artist it adds up FAST

I swear if i had a dollar for every time someone said "oh well its just the market" or "its beyond our control" I'd have like a small fortune by now everyone needs to take responsibility for their own financial decisions and stop blaming everyone else

Oil producers just decided to reduce production by 1.6 million barrels per day and now everyone's expecting a price hike at the pumps! I'm not surprised though - we're already seeing inflationary pressures everywhere . It's like the energy market is being controlled by a giant game of supply and demand .

I think it's going to be interesting to see how this plays out with the US economy recovering from the pandemic . Will prices go up or down? Only time will tell . One thing's for sure, though - we can expect some wild fluctuations in gas prices over the next few months .

I'm also curious to know what's going on behind the scenes with OPEC and how they're making decisions about production cuts . It's like a big puzzle, and we're all trying to figure out the pieces .

I'm telling you, this OPEC+ move is like the politicians switching sides on healthcare . One day they're trying to help the economy, next day they're suffocating it with higher gas prices . It's all about who gets squeezed first - the consumers or the producers? And let's be real, the White House is just playing catch-up as usual. They should've seen this coming and prepared a contingency plan . The SPR might save the day for now, but it's only temporary relief. We need systemic changes to prevent these kinds of price shocks in the future . Mark my words, this decision will be a major talking point for the next election campaign .

OMG u guyz! Oil producers just decied 2 cut production by 1.6 mil barrels per day ! Experts r predictin gas prices 2 go UP !!! I no, $3.80-$3.90 per gal is kinda steep 4 me lol . But seriously, w/ the SPR helpin out a bit, it's gonna b intresting 2 see how US economy handles dis. Hopefully, it dont cause a recession or sumthin . Anyways, gas prices were already gettin close 2 pre-pandemic levels, so it's like... we were just gettin back on track . Fingers crossed they dont make us go bak 2 $5.02 per gal lol

Ugh, can you believe this? Oil producers are reducing production and now we're gonna see higher gas prices . I know some people might say "it's just economics" but let me tell you, it affects our wallets and our daily lives. People are already struggling to make ends meet, do we really need to add more pressure to the system? I'm not saying I have all the answers, but maybe we should look into alternative energy sources instead of relying on fossil fuels so much?

Ugh, I'm so over these forum posts about OPEC's decision . Can't we just have a simple discussion without all the hype and predictions? I mean, come on, experts like Tom Kloza are just speculating about inflationary pressures and whatnot... it's not like anyone actually knows for sure how things will go down . And don't even get me started on the SPR - can we please just have some actual data to back up these claims? It feels like everyone's just throwing around numbers and hoping for the best . Can we please just stick to sharing our own personal experiences with gas prices instead of trying to predict what will happen next?