OPEC+ Unleashes Price Hike as US Gas Prices Set to Soar.
In a surprise move, the OPEC+ alliance has slashed its oil production by over 1.6 million barrels per day, effective May and set to run through year-end. This sudden adjustment sent shockwaves throughout global markets, with Brent crude futures surging about 6% and US benchmark WTI prices jumping around 8 cents a gallon - a whopping 3%. As this ripple effect makes its way down the supply chain, US gas stations are expected to see their prices skyrocket.
Energy analyst Tom Kloza at OPIS warns that OPEC's bold move will reignite the "inflation monster," with White House officials likely feeling "shocked and major-time pissed." According to Kloza, gasoline futures may jump to $3.80-$3.90 per gallon within a short period, pushing US gas prices significantly higher.
Currently, the national average for US gas prices stands at $3.51, but Kloza predicts it could surpass $4 in relatively quick succession due to OPEC's production cut. However, he cautions that while a significant spike is unlikely, year-end prices may creep back up above pre-pandemic levels if storms disrupt oil production along the Gulf Coast.
A comparison to last year reveals some context: US regular gas prices hit an all-time high of $5.02 per gallon in June 2022 but have since declined steadily as global demand slowed and supply chains adjusted. On February 23, 2022, just a day before Russia's invasion of Ukraine sparked the price surge, US gas prices stood at $3.53 - now mere pennies shy of that record high.
Kloza acknowledges that while additional oil releases from the Strategic Petroleum Reserve (SPR) and increased domestic production have helped cushion prices, OPEC's bold move will not be easily offset. He suggests one factor keeping prices in check is the US plans to release more SPR oil but warns that a 1 million barrel-per-day reduction in production by OPEC+ is difficult to compensate for.
The unexpected move from OPEC+ has sent a clear message: with global energy markets reeling, producers are willing to take bold action to support supply. As prices continue their upward trajectory, one thing is certain - US drivers can expect to pay more at the pump in the coming months.
In a surprise move, the OPEC+ alliance has slashed its oil production by over 1.6 million barrels per day, effective May and set to run through year-end. This sudden adjustment sent shockwaves throughout global markets, with Brent crude futures surging about 6% and US benchmark WTI prices jumping around 8 cents a gallon - a whopping 3%. As this ripple effect makes its way down the supply chain, US gas stations are expected to see their prices skyrocket.
Energy analyst Tom Kloza at OPIS warns that OPEC's bold move will reignite the "inflation monster," with White House officials likely feeling "shocked and major-time pissed." According to Kloza, gasoline futures may jump to $3.80-$3.90 per gallon within a short period, pushing US gas prices significantly higher.
Currently, the national average for US gas prices stands at $3.51, but Kloza predicts it could surpass $4 in relatively quick succession due to OPEC's production cut. However, he cautions that while a significant spike is unlikely, year-end prices may creep back up above pre-pandemic levels if storms disrupt oil production along the Gulf Coast.
A comparison to last year reveals some context: US regular gas prices hit an all-time high of $5.02 per gallon in June 2022 but have since declined steadily as global demand slowed and supply chains adjusted. On February 23, 2022, just a day before Russia's invasion of Ukraine sparked the price surge, US gas prices stood at $3.53 - now mere pennies shy of that record high.
Kloza acknowledges that while additional oil releases from the Strategic Petroleum Reserve (SPR) and increased domestic production have helped cushion prices, OPEC's bold move will not be easily offset. He suggests one factor keeping prices in check is the US plans to release more SPR oil but warns that a 1 million barrel-per-day reduction in production by OPEC+ is difficult to compensate for.
The unexpected move from OPEC+ has sent a clear message: with global energy markets reeling, producers are willing to take bold action to support supply. As prices continue their upward trajectory, one thing is certain - US drivers can expect to pay more at the pump in the coming months.
. It's like, I get it, OPEC+ wants to support supply and all that, but 6% surge on Brent crude futures? That's a lot! 
And with US gas prices already up, it's not like we're gonna be sipping margaritas at the beach anytime soon 
. Tom Kloza's right, though - this could reignite the inflation monster. I just hope they don't raise their prices too much or it'll hit those struggling folks hard 
. And can someone please explain to me why gas prices are still kinda high after all these years? Like, we're supposed to be in a post-pandemic world now 
!
. I'm not mad, just prepared for a bigger wallet 
. And what's with everyone freaking out about gas prices?! It's not like it's gonna affect my avocado toast budget 
. The US needs a little inflation to get their economy going again, and if that means higher gas prices, so be it! I'll just take the bus or bike more often... oh wait, who am I kidding? 
. I mean, think about it, if oil production is cut back, it means there's less supply out there, so prices have got to go up right? It's basic economics, folks! 
️. I'm not buying into all the hype about "reigniting the inflation monster" or how it'll affect White House officials - they're just making excuses 
. The US should be grateful for OPEC's bold move, and if prices do go up, well, that's just part of the price of progress 
. Bring it on! 
isnt that just pennies shy of the record high tho? anyway, i guess opec is trying to make a point that they can still control the market 
. I guess the good news is that we're all being reminded of just how volatile global energy markets can get 
.
i've been saying it for ages that us oil producers need to step up their game and take control of their own supply chains, but opec+'s bold move is definitely not what the energy market needed right now 
. gas prices are already sky-high in some states, can you imagine if they skyrocket across the country? $4 a gallon is just crazy talk 
I mean, come on, folks! $4 a gallon? That's crazy talk! 
Please, that's just a given. I mean, you can't just cut production and expect everything to magically go back to normal 
. This is gonna have some serious ripples through the economy, trust me 
.
...i think its time for people to start thinking about public transport or carpooling a bit more seriously...at least opec+ is showing us that they care about supply and can make changes to support it 
maybe we should also look into reducing our consumption of energy-intensive things like avocados and video games 
. It's going to be an interesting few months, that's for sure 
i'm already dreading the summer road trips cuz of this... $4 a gallon? that's crazy talk! i guess we'll just have to shell out more cash at the pump 
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