OPEC+ Decision Sends US Gas Prices Soaring
In a move that is expected to significantly increase US gas prices, OPEC+ has announced plans to slash oil production by more than 1.6 million barrels per day starting in May. The group's decision sent shockwaves through the global energy market, with Brent crude futures and WTI oil prices rising about 6% on Monday.
The impact of this move will be felt at US gas pumps sooner rather than later, with wholesale gasoline prices already jumping by about 8 cents a gallon, or around 3%. According to Tom Kloza, global head of energy analysis for OPIS, which tracks gas prices for AAA, "I think OPEC is reawakening the inflation monster. The White House has to be shocked and major-time pissed."
The current national average for US gas prices stands at $3.51 per gallon, but Kloza predicts that it could rise to $3.80-$3.90 in relatively short order due to the reduced oil supply. However, he notes that prices are unlikely to reach record levels seen last year, when the average regular gas price was $4.19 a gallon.
One factor keeping prices from getting too high is the US Strategic Petroleum Reserve's planned releases and increased domestic oil production and refining capacity. Nonetheless, the impact of OPEC+'s decision will be significant, particularly if disruptions occur along the Gulf Coast due to bad weather.
According to Kloza, "We're not going to get back to $5 a gallon. I don't think we're even going as high as $4." However, he suggests that by the end of the summer, US drivers could see prices rise again, especially if there are further disruptions in oil production.
In a move that is expected to significantly increase US gas prices, OPEC+ has announced plans to slash oil production by more than 1.6 million barrels per day starting in May. The group's decision sent shockwaves through the global energy market, with Brent crude futures and WTI oil prices rising about 6% on Monday.
The impact of this move will be felt at US gas pumps sooner rather than later, with wholesale gasoline prices already jumping by about 8 cents a gallon, or around 3%. According to Tom Kloza, global head of energy analysis for OPIS, which tracks gas prices for AAA, "I think OPEC is reawakening the inflation monster. The White House has to be shocked and major-time pissed."
The current national average for US gas prices stands at $3.51 per gallon, but Kloza predicts that it could rise to $3.80-$3.90 in relatively short order due to the reduced oil supply. However, he notes that prices are unlikely to reach record levels seen last year, when the average regular gas price was $4.19 a gallon.
One factor keeping prices from getting too high is the US Strategic Petroleum Reserve's planned releases and increased domestic oil production and refining capacity. Nonetheless, the impact of OPEC+'s decision will be significant, particularly if disruptions occur along the Gulf Coast due to bad weather.
According to Kloza, "We're not going to get back to $5 a gallon. I don't think we're even going as high as $4." However, he suggests that by the end of the summer, US drivers could see prices rise again, especially if there are further disruptions in oil production.
i cant believe opec+ is doin this to us 
. 3.80-3.90 a gallon? that's like, crazy expensive 
. i remember last year it was $4.19 a gallon and now its like, whoa 
. i hope the us strategic petroleum reserve can help keep prices down 
. and dont even get me started on the gulf coast weather... bad things are gonna happen 
. i just wanna fill up my tank without breakin the bank 
this is not good news for americans' wallets at all... a 6% increase in gas prices? that's like, a whole lotta cash outta pocket 
and it's gonna affect people's daily lives too. i feel bad for those who are already struggling to make ends meet 
the strategic reserve releases and domestic oil production might help keep prices from gettin too outta control but still.. u can bet i'll be fillin up at $4 a gallon and wishin it was cheaper lol 
this is just what we need more price hikes! $3.80-$3.90?! Are they kidding me? 
I'm worried that we might hit $4 a gallon soon, that'd be pretty painful for most people. But at the same time, those guys in Washington are already planning some oil releases from the Strategic Petroleum Reserve to try and calm things down. They also mentioned that domestic production is getting better, so let's keep an eye on both sides of this equation 
. I mean, think about it, we can't have too much cheap gas or the entire global economy will be ruined... right? 
. On the bright side, our reserve is supposed to release some oil or whatever... not enough, I guess. One guy's saying we won't see $5 a gallon again, but by summer? Please... 
. I mean, they're basically telling the world they're not interested in making deals anymore. It's gonna be a wild ride for gas prices and the economy. Hopefully, we won't see any major disruptions along the Gulf Coast or it could get really ugly 
i mean what's not to love? crispy outside and fluffy inside... my favorite snack rn anyway back to this opec+ thing... remember when gas was like $2 a gallon? feels like forever ago 
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Plus, I'm curious to see how domestic oil production and refining capacity are going to impact things - maybe it'll be a silver lining? 
OPEC+ just dropped like 1.6 million barrels per day starting May? This is a huge move and it's gonna mess with our gas prices for real. I'm not surprised though, they've been playing with the global energy market like a fiddle 
. I mean, what's next? Are they gonna cut off oil supply to Europe too? 
. 3.80-$3.90? That sounds like a lot for us regular folks 
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i'm not surprised tho, i mean who doesn't love a good inflationary squeeze on their wallet? 