OPEC+ Unleashes Shockwaves in US Gas Prices, Inflation Returns
The Organization of the Petroleum Exporting Countries (OPEC) has announced a surprise move to slash oil production by over 1.6 million barrels per day, starting from May and lasting through the end of the year. This drastic cut is expected to send shockwaves throughout the global energy market and result in higher gas prices for US consumers.
The news sent Brent crude futures soaring by about 6% in Monday's trading session, while WTI oil benchmarks also saw significant gains. As a direct consequence, gasoline futures skyrocketed by around 8 cents per gallon, or about 3%, in morning trading, which is expected to be passed on quickly to US drivers.
Energy analysts are warning that OPEC's decision will likely reignite the "inflation monster," causing concern among policymakers and consumers alike. Tom Kloza, global head of energy analysis for OPIS, a leading gas price tracker, believes that the White House is likely to be both shocked and irritated by this move.
Kloza predicts that US gas prices are poised to rise significantly, possibly reaching $3.80 to $3.90 per gallon in relatively short order. While he acknowledges that gas prices were already trending downward after Russia's invasion of Ukraine, he notes that the OPEC cut will be difficult to offset due to the increase in oil production and refining capacity in the US.
Historical context suggests that gas prices are likely to remain higher than they were last year, despite any planned releases from the Strategic Petroleum Reserve. Kloza explains that this is because the US has become more self-sufficient in terms of oil production and refining capacity, which reduces its dependence on international markets.
However, some analysts suggest that if a hurricane or other storms affect production along the Gulf Coast, gas prices could spike even higher. As of February 2022, the average US regular gas price stood at $4.19 per gallon, with prices eventually reaching a record high of $5.02 per gallon on June 14, 2022.
The recent surge in global energy prices has already pushed gas prices to near-record levels, and OPEC's decision is expected to accelerate this trend. With the US economy showing signs of resilience, it remains to be seen how policymakers will respond to these increased costs, which could have far-reaching implications for inflation and consumer spending power.
The Organization of the Petroleum Exporting Countries (OPEC) has announced a surprise move to slash oil production by over 1.6 million barrels per day, starting from May and lasting through the end of the year. This drastic cut is expected to send shockwaves throughout the global energy market and result in higher gas prices for US consumers.
The news sent Brent crude futures soaring by about 6% in Monday's trading session, while WTI oil benchmarks also saw significant gains. As a direct consequence, gasoline futures skyrocketed by around 8 cents per gallon, or about 3%, in morning trading, which is expected to be passed on quickly to US drivers.
Energy analysts are warning that OPEC's decision will likely reignite the "inflation monster," causing concern among policymakers and consumers alike. Tom Kloza, global head of energy analysis for OPIS, a leading gas price tracker, believes that the White House is likely to be both shocked and irritated by this move.
Kloza predicts that US gas prices are poised to rise significantly, possibly reaching $3.80 to $3.90 per gallon in relatively short order. While he acknowledges that gas prices were already trending downward after Russia's invasion of Ukraine, he notes that the OPEC cut will be difficult to offset due to the increase in oil production and refining capacity in the US.
Historical context suggests that gas prices are likely to remain higher than they were last year, despite any planned releases from the Strategic Petroleum Reserve. Kloza explains that this is because the US has become more self-sufficient in terms of oil production and refining capacity, which reduces its dependence on international markets.
However, some analysts suggest that if a hurricane or other storms affect production along the Gulf Coast, gas prices could spike even higher. As of February 2022, the average US regular gas price stood at $4.19 per gallon, with prices eventually reaching a record high of $5.02 per gallon on June 14, 2022.
The recent surge in global energy prices has already pushed gas prices to near-record levels, and OPEC's decision is expected to accelerate this trend. With the US economy showing signs of resilience, it remains to be seen how policymakers will respond to these increased costs, which could have far-reaching implications for inflation and consumer spending power.
think they're tryin to screw the us economy on purpose... anyway, 3.80 to 3.90 per gallon? that's wild. ppl are sayin they'll just use the strategic petroleum reserve or whatever, but i'm like "no way, man" 
! With OPEC cutting oil production, gas prices are gonna skyrocket and that's not good news for anyone on a budget 
. I mean, who can afford $3.80 to $3.90 per gallon? That's crazy talk 
. The economy is supposed to be doing well, but all these rising costs are gonna have a ripple effect on everything from housing to food prices 
. It's been clear that they're trying to maintain control over the global oil market. With the US becoming increasingly self-sufficient in terms of oil production and refining capacity, it was only a matter of time before they made a drastic cut like this 
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. We've seen how sensitive economies can be to changes in global energy prices. It's going to be interesting to see how policymakers respond to these increased costs and whether they'll be able to mitigate the impact on consumer spending power 
. That could push prices back up to record levels, which would be a major blow to consumers already feeling the pinch from inflation 
it already feels like prices are crazy high rn... i remember when avg gas price was $4.19 per gallon in 2022, now its like $3.80 to $3.90?! 
what if there's another hurricane or something that messes up production? gas prices could skyrocket even more 
IT LOOKS LIKE OPEC IS PLAYING A BIG ROLE IN SHAKING UP THE GLOBAL ENERGY MARKET AND DRIVING UP GAS PRICES IN THE US!!! 
THAT 6% SURGE IN BRENT CRUDE FUTURES IS HUGE, AND I'M NOT SURPRISED TO HEAR THAT GASOLINE FUTURES SKYROCKETED BY 8 CENTS PER GALLON!!! 
BUT IF HURRICANES OR OTHER STORMS AFFECT PRODUCTION ALONG THE GULF COAST, GAS PRICES COULD SPIKE EVEN HIGHER!!! 
. I know we need to be responsible with our energy consumption, but when prices skyrocket, it's hard for seniors like me to make ends meet. I've seen friends and family members having to choose between paying bills or filling up their tanks. It's not easy to explain that choice to the grandkids! 
.
, you know, sushi, ramen, tempura... I've always wanted to go there but never had the chance. Have you ever tried making sushi at home? It's way harder than it looks 
. And speaking of hard to reach places, have you heard about that new escape room that just opened up downtown? I heard it's super challenging and requires teamwork to solve the puzzles 
lol can you believe opec is cutting oil production again? it's gonna be a wild ride, folks! 
like, what's next? $4 per gallon? that's crazy talk 
maybe it's just a matter of time before gas prices go back down... but for now, let's just say it's gonna be another wild ride 
The US is already feeling the pinch, and now it's time to get ready for a price hike 
. Hurricane season could bring even more chaos 
#OpecSurprise #GasPriceHike #InflationWorries
. The US is all set for a rough ride ahead...
also the white house is gonna be SHOCKED 
who are always predicting these things! 
anywayz can't wait to fill up my tank & enjoy the thrill of watching gas prices go up