OPEC+ Sees Gas Prices Soar as Oil Production Cut Looms, Experts Warn of Higher Inflation
A surprise move by OPEC+ to slash oil production has sent shockwaves through the energy market, with US gas prices set to rise significantly in the coming weeks. The group's decision to cut production by over 1.6 million barrels a day starting May will have an immediate impact on gasoline futures, which are expected to pass on to consumers much faster than oil price hikes.
According to Tom Kloza, global head of energy analysis for OPIS, which tracks gas prices for AAA, OPEC's move could awaken the "inflation monster" and put pressure on the White House. Kloza estimates that US drivers may see gas prices rise to $3.80-$3.90 in a relatively short period, with some experts warning that prices may not drop back to $5 per gallon as previously seen.
The impact of OPEC's move is already being felt at the pump, with national average gas prices rising to $3.51 on Monday, up from last week's average of $3.43. This marks a significant increase, and some experts believe that the rise in gas prices will be more pronounced due to the faster impact on gasoline futures.
The move by OPEC+ has also been driven by concerns over global energy demand and supply. The group is seen as motivated to cut production, but it remains to be seen how effective this move will be in addressing these concerns. With US oil production and refining capacity both up, additional releases from the Strategic Petroleum Reserve (SPR) are expected to help mitigate the impact of lower oil supplies.
However, with a hurricane or other storms affecting production along the Gulf Coast potentially disrupting oil flows, some experts warn that gas prices could rebound towards year-earlier levels. The average US regular gas price in February 2022 was $4.19 per gallon, and while it has since declined to around $3.51, there is still room for gas prices to rise.
As the market continues to grapple with OPEC's decision, one thing is clear: higher gas prices are on the horizon, and consumers will feel the pinch in their wallets.
A surprise move by OPEC+ to slash oil production has sent shockwaves through the energy market, with US gas prices set to rise significantly in the coming weeks. The group's decision to cut production by over 1.6 million barrels a day starting May will have an immediate impact on gasoline futures, which are expected to pass on to consumers much faster than oil price hikes.
According to Tom Kloza, global head of energy analysis for OPIS, which tracks gas prices for AAA, OPEC's move could awaken the "inflation monster" and put pressure on the White House. Kloza estimates that US drivers may see gas prices rise to $3.80-$3.90 in a relatively short period, with some experts warning that prices may not drop back to $5 per gallon as previously seen.
The impact of OPEC's move is already being felt at the pump, with national average gas prices rising to $3.51 on Monday, up from last week's average of $3.43. This marks a significant increase, and some experts believe that the rise in gas prices will be more pronounced due to the faster impact on gasoline futures.
The move by OPEC+ has also been driven by concerns over global energy demand and supply. The group is seen as motivated to cut production, but it remains to be seen how effective this move will be in addressing these concerns. With US oil production and refining capacity both up, additional releases from the Strategic Petroleum Reserve (SPR) are expected to help mitigate the impact of lower oil supplies.
However, with a hurricane or other storms affecting production along the Gulf Coast potentially disrupting oil flows, some experts warn that gas prices could rebound towards year-earlier levels. The average US regular gas price in February 2022 was $4.19 per gallon, and while it has since declined to around $3.51, there is still room for gas prices to rise.
As the market continues to grapple with OPEC's decision, one thing is clear: higher gas prices are on the horizon, and consumers will feel the pinch in their wallets.
. As experts warn of potential inflationary pressures, it's essential to consider the intricate relationships between oil supply and demand, as well as the economic implications for consumers 
. With gas prices set to rise significantly, especially at the pump, this development is likely to have a ripple effect on household budgets and overall economic sentiment 
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. OPEC+ is just playing a game of supply and demand, but there's something fishy going on here. I mean, who benefits from higher gas prices? The oil majors, that's who! They get to pocket more cash while we're left scrambling to pay for our fuel. And don't even get me started on the White House - they're just waiting for an excuse to raise taxes and justify their spending. This whole thing smells like a setup to me... 
. The idea of gas prices rising to $3.80-$3.90 in no time is making me want to stock up on fuel ASAP 
️! It's not just about the cost of driving around, it's also about how inflation is going to affect people's daily lives, you know? Some experts are warning that this move could be like a switch being flipped, and we'll see prices skyrocket. 
I'm curious to see how the US government and other countries will respond to this sudden shift in energy markets. Will they be able to mitigate the effects, or will it become a major issue for people to deal with? 
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. Meanwhile, they'll be sittin' on their strategic petroleum reserve like a big ol' piggy bank 
. And don't even get me started on OPEC+, they're just tryin' to prop up the oil cartel and control the market 
. Gas prices gonna go up, yeah right... but I bet it's all part of some grand scheme to crush the middle class 
Gas prices are gonna skyrocket and people are already feeling the squeeze. $3.80-$3.90? That's insane! And what about inflation? The "inflation monster" is going to eat us all up. Mark my words, this will be a nightmare for regular folks. I'm not buying into this "short-term drop back down" nonsense either. We're in for a bumpy ride and it's gonna hurt everyone. 
I'm talking $3.80-$3.90 per gallon, can you believe it?! 
The "inflation monster" is real, folks! 
Experts are warning that these price hikes won't just disappear, and US drivers will feel the burn 
I'm definitely stocking up on gas money for the month ahead of me 
. Inflation is like, when things cost more money, right? But in this case, it seems like supply and demand are playing their part. OPEC+ is just trying to balance out global energy markets, which isn't their fault.
. If we can get those storms to pass without too much damage, I think gas prices will be fine 
.