US Gas Prices Expected to Soar as OPEC+ Announces Production Cut. A surprise move by the Organization of the Petroleum Exporting Countries (OPEC+) to slash oil production by over 1.6 million barrels a day is likely to send US gas prices soaring in the coming months.
The decision, announced on Sunday, has already sent Brent crude futures and WTI, the US benchmark, surging about 6% in trading Monday, with gasoline futures also experiencing an immediate spike of nearly 3%. As a result, wholesale gasoline prices are up by around 8 cents a gallon, or about 3%, according to data.
Energy analyst Tom Kloza of OPIS, which tracks gas prices for AAA, believes that OPEC's move could reignite the "inflation monster" and cause US drivers to face even higher pump prices. The current national average for US gas prices stands at $3.51, but Kloza predicts it could reach $3.80-$3.90 in short order.
While some analysts suggest that gas prices may eventually decline by the end of summer if production disruptions or storms affect the Gulf Coast oil refineries, others are less optimistic, citing the impact of OPEC's decision as a significant increase to US motorists' pocketbooks.
In 2022, gas prices reached record levels of $5.02 per gallon following Russia's invasion of Ukraine and subsequent global energy market disruptions. However, since then, prices have declined steadily, albeit with some fluctuations. The current price is just below the pre-invasion average on February 23, 2022.
According to Kloza, one factor keeping prices in check is that US oil production and refining capacity are both up, with additional releases from the Strategic Petroleum Reserve (SPR) also helping to mitigate the impact of OPEC's decision. However, a cut of this magnitude will be difficult to compensate for, suggesting that motorists can expect higher prices for the foreseeable future.
The decision, announced on Sunday, has already sent Brent crude futures and WTI, the US benchmark, surging about 6% in trading Monday, with gasoline futures also experiencing an immediate spike of nearly 3%. As a result, wholesale gasoline prices are up by around 8 cents a gallon, or about 3%, according to data.
Energy analyst Tom Kloza of OPIS, which tracks gas prices for AAA, believes that OPEC's move could reignite the "inflation monster" and cause US drivers to face even higher pump prices. The current national average for US gas prices stands at $3.51, but Kloza predicts it could reach $3.80-$3.90 in short order.
While some analysts suggest that gas prices may eventually decline by the end of summer if production disruptions or storms affect the Gulf Coast oil refineries, others are less optimistic, citing the impact of OPEC's decision as a significant increase to US motorists' pocketbooks.
In 2022, gas prices reached record levels of $5.02 per gallon following Russia's invasion of Ukraine and subsequent global energy market disruptions. However, since then, prices have declined steadily, albeit with some fluctuations. The current price is just below the pre-invasion average on February 23, 2022.
According to Kloza, one factor keeping prices in check is that US oil production and refining capacity are both up, with additional releases from the Strategic Petroleum Reserve (SPR) also helping to mitigate the impact of OPEC's decision. However, a cut of this magnitude will be difficult to compensate for, suggesting that motorists can expect higher prices for the foreseeable future.
I mean, I know OPEC's move is probably gonna have some effect on global oil prices, but 6% surge in Brent crude futures? That's crazy talk! 
I remember when gas prices were at record levels back in '22, it was a real pain. But they did come down a bit after that, and now we're seeing them creep back up again. 
What really gets me is that these OPEC+ cuts are just gonna make life harder for American drivers like me. I'm already pinching pennies on everything else in my retirement budget... 
Do they think we don't notice when our gas prices go up? 
The recent OPEC+ production cut is definitely going to have a ripple effect on US gas prices 
. I think it's interesting how energy analyst Tom Kloza views this decision as potentially reigniting the "inflation monster" 
. With the current national average already at $3.51, it's not surprising that prices could surge to around $3.80-$3.90 in the near future 
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. With OPEC+ taking a significant cut in production, it'll be challenging to mitigate this impact with additional releases from the SPR 
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Oil production just got slashed by 1.6 million barrels a day? That's like, huge! 
Now gas prices are gonna skyrocket and I'm already dreading the next road trip 
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So, they're cutting oil production by 1.6 million barrels a day? That's huge! 
Still, can we just get some help from somewhere? Like, have they considered increasing production or something? 
just saw that OPEC+ is cutting production by 1.6 MILLION barrels a day... that's like, super crazy talk! 
. It's not ideal for motorists, especially with higher-than-expected inflation already biting at our wallets 
$3.51 was already crazy, and now it's like $3.80-$3.90? that's just brutal 
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. But at the end of the day, it's just another case of supply and demand, you know? And when OPEC makes a move like this, we're gonna feel it 
And if gas prices get that high, it'll just affect more people who can't afford it. I feel for all the truckers out there already struggling to make ends meet 
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That's like a little silver lining... but we'll see how that plays out! 
. I remember when $5 per gallon was crazy, but at least we could afford to fill up on the weekends or something 
. Now it's like, a normal day is "treat yourself" time... just kidding lol. But seriously, I'm getting worried about how this is gonna affect people's budgets. And what's with OPEC cutting production by 1.6 million barrels? That sounds like a whole lotta oil to me 
. It's like they're just trying to screw us over 
its like they're playing with fire here... gas prices could reach $4 or more in no time!!! anyone else feeling the pinch of rising gas prices