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.
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.
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 
! 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 
, but still... 3.80 to $3.90 per gallon? That's steep! 
. Fingers crossed that it can mitigate the impact of OPEC's production cut 
.
. Let's just hope that this time around, things won't be as bad 
.
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 
.
it's already tough for people to afford groceries and other essentials, let alone gas 
those were the days where you could fill up your tank and not break the bank 
. 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! 
Those were, like, a million dollars per gallon! 
️. But here's the thing - gas prices have been trending down since last year's record high of $5.02 
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. They might not hit those record highs, but they're def gonna be higher than last year at this time 
️
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 
Oil producers just decided to reduce production by 1.6 million barrels per day and now everyone's expecting a price hike 
.
. One thing's for sure, though - we can expect some wild fluctuations in gas prices over the next few months 
. It's like a big puzzle, and we're all trying to figure out the pieces 
.
. 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 
.
. 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 
. Can we please just stick to sharing our own personal experiences with gas prices instead of trying to predict what will happen next?