US Gas Prices Expected to Soar as OPEC+ Cuts Production
A surprise move by the Organization of the Petroleum Exporting Countries (OPEC)+ has sent shockwaves through the global energy market, with US gas prices predicted to rise significantly in the coming months. The cartel announced on Sunday that it would slash oil production by over 1.6 million barrels per day starting May, a decision that will have far-reaching consequences for consumers and the economy.
The news has already had an immediate impact on gasoline futures, with wholesale prices jumping up about 8 cents per gallon, or 3%, in morning trading. This spike is expected to be passed on to US drivers at the pump, leading to higher prices than seen just last week. Analysts predict that national averages for gas prices could reach $3.80 to $3.90 by summer, although some experts believe prices may not exceed $4 per gallon.
According to Tom Kloza, global head of energy analysis for OPIS, which tracks gas prices for AAA, the move by OPEC+ is "reawakening the inflation monster." The White House has already expressed concern over the potential impact on US consumers and the economy. While some experts believe that prices may not reach record levels seen in 2022 – when gas prices hit a staggering $5.02 per gallon – others warn that the effects of the production cut will be felt for some time to come.
One factor driving this predicted price increase is the ongoing impact of Russia's invasion of Ukraine on global energy markets. Last year, gas prices surged to record levels as Western countries imposed sanctions on Russian energy exports, leading to a shortage and increased costs for consumers. While the US Strategic Petroleum Reserve has helped to ease some pressure on prices by releasing oil into the market, analysts warn that this effect will wear off over time.
The US production cuts by OPEC+ are also expected to have an impact on domestic production, particularly in regions such as the Gulf Coast, which is vulnerable to storms and disruptions. By summer, experts predict that gas prices could rise again if there are further disruptions to supply chains or if new storms hit major oil-producing areas.
As US consumers prepare for higher gas prices, analysts offer a mixed message: while some expect prices to reach new heights of over $4 per gallon, others believe the White House and regulatory bodies will implement measures to mitigate these effects. Nonetheless, one thing is clear – OPEC+'s surprise move has sent shockwaves through the global energy market, with far-reaching consequences for US consumers and the economy.
A surprise move by the Organization of the Petroleum Exporting Countries (OPEC)+ has sent shockwaves through the global energy market, with US gas prices predicted to rise significantly in the coming months. The cartel announced on Sunday that it would slash oil production by over 1.6 million barrels per day starting May, a decision that will have far-reaching consequences for consumers and the economy.
The news has already had an immediate impact on gasoline futures, with wholesale prices jumping up about 8 cents per gallon, or 3%, in morning trading. This spike is expected to be passed on to US drivers at the pump, leading to higher prices than seen just last week. Analysts predict that national averages for gas prices could reach $3.80 to $3.90 by summer, although some experts believe prices may not exceed $4 per gallon.
According to Tom Kloza, global head of energy analysis for OPIS, which tracks gas prices for AAA, the move by OPEC+ is "reawakening the inflation monster." The White House has already expressed concern over the potential impact on US consumers and the economy. While some experts believe that prices may not reach record levels seen in 2022 – when gas prices hit a staggering $5.02 per gallon – others warn that the effects of the production cut will be felt for some time to come.
One factor driving this predicted price increase is the ongoing impact of Russia's invasion of Ukraine on global energy markets. Last year, gas prices surged to record levels as Western countries imposed sanctions on Russian energy exports, leading to a shortage and increased costs for consumers. While the US Strategic Petroleum Reserve has helped to ease some pressure on prices by releasing oil into the market, analysts warn that this effect will wear off over time.
The US production cuts by OPEC+ are also expected to have an impact on domestic production, particularly in regions such as the Gulf Coast, which is vulnerable to storms and disruptions. By summer, experts predict that gas prices could rise again if there are further disruptions to supply chains or if new storms hit major oil-producing areas.
As US consumers prepare for higher gas prices, analysts offer a mixed message: while some expect prices to reach new heights of over $4 per gallon, others believe the White House and regulatory bodies will implement measures to mitigate these effects. Nonetheless, one thing is clear – OPEC+'s surprise move has sent shockwaves through the global energy market, with far-reaching consequences for US consumers and the economy.
! 1.6 million barrels less oil per day is gonna hurt us big time 
. i've seen friends in LA pay like $4 a gallon last year and it was already crazy expensive 
. now they're predicting it could go up to $3.80-$3.90? that's just not fair 
. and don't even get me started on the storms and supply chain issues... 
we need some creative solutions here, like my friend who built a solar panel system for his car 
. opec+ needs to think about the people, not just their own interests 
. hope the white house can step in and help us out 
, like food and housing, when prices go up 
it's not just gas that's gonna take a hit 
. I'm also curious to see how the white house handles this 
, will they step in with measures to cushion the blow or let the market find its own way? 
...gas prices are already kinda high right now and if opec+ cuts production even more it's gonna be a disaster 
. i just hope the white house can do something to help the people, not just big corporations 
. anyway, let's all just take a deep breath and try to be calm 
...i know it's hard when gas prices are rising but we gotta look out for each other 