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

OPEC+ Unleashes Inflationary Pressure: US Gas Prices Poised for Spike

A surprise move by OPEC+ to slash oil production has sent shockwaves through global energy markets, with US gas prices expected to feel the pinch. The cartel's decision to cut output by more than 1.6 million barrels per day, effective May 2023, will have an immediate impact on gasoline futures and subsequently translate into higher prices for US drivers.

According to Tom Kloza, global head of energy analysis for OPIS, OPEC+ is "rewakening the inflation monster" with this move. The White House is likely to be concerned about the implications, as higher gas prices can erode consumer spending power and reduce economic growth. Kloza predicts that US gas prices could reach $3.80 to $3.90 in relatively short order.

The national average for US gas prices stands at $3.51, but experts believe it's a temporary reprieve. A year ago, the average price was $4.19 per gallon, just below the record high of $5.02 set on June 14, 2022. The decline in prices after Russia's invasion of Ukraine and subsequent energy market disruptions has been largely driven by oil releases from the US Strategic Petroleum Reserve.

Kloza notes that while the US plans additional SPR releases, which could help moderate prices, a cut of 1 million barrels per day of oil by OPEC+ will not be easily offset. The cartel's ability to reduce production and their motivation for doing so are key factors in this scenario. The analyst believes that despite concerns about recession-induced demand reductions, US gas prices may yet recover, potentially reaching year-earlier levels by the end of summer if there are disruptions to oil production along the Gulf Coast.

Yooo what's good, I just saw this news and I gotta say, OPEC+ is playing with fire ! Slashing oil production like that? That's gonna hurt everyone except them. Mark my words, gas prices in the US are about to skyrocket . The White House is all worried about consumer spending power, but let's be real, they're just trying to mitigate the damage . I mean, we all know how much politicians love a good excuse to lower taxes and boost economic growth... meanwhile, the average Joe has to pay through the nose for their daily commute. Anyway, I'm calling it: gas prices are gonna reach $4+ soon .

This is getting outta hand! $3.80-$3.90 a gallon? That's just crazy talk! Who needs that kind of cash? They're gonna have to take it from someone else, that's for sure... not on my watch! What's next? Higher prices on everything? This is just ridiculous.

just thought, like, have you guys noticed how energy markets can be super volatile? anyway, OPEC+ cutting production is no joke... stats show that a 1.6 mil barrel/day reduction would give us an additional $0.25/gallon in gas prices US drivers are gonna feel it! also, did you know that last year's $4.19/gallon was just below the record high of $5.02? and right now we're at $3.51... price drop is temporary

omg u guys, just saw that OPEC+ is slashing oil production and i'm low-key freaking out ! I know, i know, we're all thinking the same thing... what's gonna happen to our gas prices?! i mean, $3.80 to $3.90 is crazy talk! they think it's a temporary reprieve but i don't trust it . and what about those SPR releases? like, they'll try to offset it but opec+ is being super aggressive here . we might see prices go up again soon... *worried face*

This OPEC+ move is like, so not a good omen for US consumers right now. I mean, we were just starting to see some relief with gas prices dipping below $4 a gallon... and then BAM! They slash oil production by 1.6 million barrels? That's gonna hurt inflationary pressure, but it's also gonna make life harder for people on a tight budget. And let's be real, the White House is already on edge about recession fears - higher gas prices are just gonna add to that anxiety . It's like, I get it, OPEC+ wants to boost their oil sales, but don't they know that's not exactly how the global economy works?

I'm not surprised about OPEC+ cutting oil production - it's been a while since they made any moves like this! Now, US gas prices are gonna feel the heat, and it's gonna be a bumpy ride for drivers . It's interesting to hear Tom Kloza talk about how OPEC+ is "rewakening the inflation monster" - I mean, who wants higher gas prices? Not me!

The White House better be watching out, 'cause higher gas prices can really hurt consumer spending power and economic growth . And with $3.51 being the current national average, it's not like we're in a good spot here . I'm keeping an eye on this situation, though - if there are any disruptions to oil production along the Gulf Coast, US gas prices might actually recover !

Oh man, I'm already feeling the squeeze with my wallet just thinking about it! This OPEC+ move is like a ticking time bomb for US gas prices. $3.80 to $3.90? That's crazy talk! A year ago, we were still dealing with post-pandemic price hikes, and now they're back at record highs... or so I'm told . The thing that gets me is how unpredictable it all seems. One minute you think prices are gonna drop, the next they're skyrocketing again. It's like playing a game of whack-a-mole with inflation .

Just had a thought, what's up with OPEC+ trying to cut production right now? Like, I get it, supply and demand and all that, but aren't they worried about creating inflationary pressure? It seems like a classic case of "be careful what you wish for". One day they're trying to control the price of oil, next thing you know gas prices are spiking again.

I feel like OPEC+ is playing a tricky game here... on one hand, reducing oil production makes sense for them as it increases their bargaining power and gives them more control over global prices. But at the same time, cutting production by 1.6 million barrels per day could have unintended consequences for the entire energy market . I'm curious to see how this will all shake out - are they just trying to make a quick buck or is there something else going on? ️ One thing's for sure, it'll be interesting to keep an eye on US gas prices and see how they respond to these changes

I'm kinda worried about those rising gas prices but at the same time, I think it's good that OPEC+ is taking control of their oil production and setting a new norm for the market . It might be inconvenient for US drivers now, but in the long run, it could lead to more stable and predictable prices . And hey, if gas prices do reach $3.80 to $3.90, I guess it's a good excuse to start carpooling or exploring alternative modes of transportation like biking or walking . Silver linings all around!

I'm not surprised by OPEC+'s move but it's still gonna be a bummer for Americans. $3.80-$3.90 is already steep, and an extra 50 cents on top of that? No thanks Gas prices are one thing we can't just 'deal with' or find ways to make more affordable when we're already living paycheck to paycheck. The economy's a mess as it is, and this just makes things worse

I'm not surprised to see OPEC+ making a move like this, it's been a bit quiet for them lately and I think they're trying to regain some control over the global energy market. The thing is, oil prices have been pretty low for a while now, and producers are going to want to make more money from their barrels. It makes sense that they'd cut back production to increase the value of each barrel.

But let's be real, $3.80 to $3.90 per gallon is still really high, especially when you consider the national average was just at $3.51. I'm not saying it's going to be a disaster or anything, but for people who are already on tight budgets, it's going to be tough.

I think what's interesting here is that OPEC+ is trying to "rewake" inflation, which means they're hoping to stimulate demand and make more money by reducing supply. But it's not that simple, you know? The economy is a complex system and there are so many factors at play. It's hard to predict exactly how this will all play out.

Personally, I think the US gas prices could go up for a bit, but they might also stabilize if oil production gets disrupted elsewhere in the world. Like, if something happens on the Gulf Coast, that could push prices back down again. So, we'll just have to wait and see how things play out!

I don't know, man... this OPEC+ move is like a double-edged sword, ya know? On one hand, it's gonna hurt people who can barely afford gas , but on the other hand, maybe it'll encourage some folks to conserve energy and reduce their carbon footprint, which is kinda cool . I just hope we don't see prices skyrocketing like crazy ... that'd be a total bummer .

I'm kinda worried about what's gonna happen to my wallet ... like I know OPEC+ cutting back on oil will make us pay more at the pump and that's never fun . But, you know, it's not just US gas prices that are gonna be affected, global energy markets are all connected, right? And with Ukraine and Russia and all that energy drama going on... I'm still trying to wrap my head around how much of a role the oil reserves play in all this . Does anyone else think we're due for another price shock like last year when prices were way up?

I'm not buying it! OPEC+ is just trying to screw with the global economy again. I mean, $3.80 to $3.90 per gallon? No way, man! They think we're just gonna sit back and take it? Newsflash: gas prices are already killing small businesses and everyday people's wallets. When will they ever learn?

I'm not buying all this talk about OPEC+ unleashing inflationary pressure... Sure, a 1.6 million barrel cut in oil production sounds like it could cause some ripples, but let's keep things in perspective. Gas prices have been on a rollercoaster ride already, what with the Ukraine invasion and all that... If we're just going back to a year ago's prices of $4.19 per gallon? That's not exactly a cause for concern if it's actually just a correction after all that price volatility. Plus, those SPR releases are like the emergency brakes on this whole situation... Maybe we should be focusing on the bigger picture rather than getting caught up in the hype about OPEC+ and gas prices?

I'm low-key worried about those OPEC+ cuts . Like, I get it, they're trying to boost oil prices or whatever, but have you seen the average US gas price lately? It's already like $3.51 a gallon! If they start slashing production by 1.6 million barrels a day, we can expect those prices to jump to $4-$5 per gallon by summer . I mean, I know some people are still trying to save money, but let's be real, $4-$5 gas is like a major bummer for road trips and all that .

The OPEC+ decision is gonna send shockwaves all over the place! I'm thinking what's really driving this move - is it just about profit or is something else going on? They're basically giving the middle finger to global energy stability and now everyone's gonna feel the pinch. I'm not convinced that the US SPR releases will be enough to offset the impact... those prices are gonna go up, no matter what

omg i was just thinking about trying out that new brunch spot downtown ... like have you guys been? i heard their waffles are TO DIE FOR anyway, back to gas prices... ugh i hate when they do this stuff to us . and don't even get me started on the SPR releases . seriously though, what's up with oil production being all wonky? can't we just have a stable price for once? maybe it's time to invest in some electric cars or something... i mean, my friend has one and it's so cool!