OPEC+ takes drastic step, sends US gas prices soaring as inflation worries return.
The OPEC+ alliance has made a surprise move to slash oil production by more than 1.6 million barrels per day starting May, with the effect already being felt at US gas pumps. The news sent shockwaves through global energy markets, causing Brent crude futures and WTI, the US benchmark, to surge about 6% in trading on Monday.
The immediate impact was seen in gasoline futures, which are expected to be passed onto American drivers much more quickly than oil prices. RBOB, the most closely watched wholesale gasoline price, rose by about 8 cents per gallon or 3% in morning trading.
Energy analysts are warning that this move will likely reignite inflation concerns and send US gas prices higher. Tom Kloza, global head of energy analysis for OPIS, a leading source for gas prices, believes OPEC's decision will "awaken the inflation monster" and could leave the White House feeling "shocked and major-time pissed." He predicts that US gas prices will rise to $3.80-$3.90 per gallon in relatively short order.
In the past year, US regular gas prices have been steadily declining since reaching a record high of $5.02 per gallon on June 14, 2022, due to factors such as the release of oil from the US Strategic Petroleum Reserve and concerns about a potential recession. However, Kloza believes that this move will make it difficult for US drivers to get back down to year-earlier prices, with prices potentially rising again if there are disruptions in production along the Gulf Coast.
With gas prices already approaching $3.51 per gallon, which is just below the average price of $3.53 on February 23, 2022, before Russia's invasion of Ukraine, this latest move by OPEC+ is likely to have a significant impact on consumers.
The OPEC+ alliance has made a surprise move to slash oil production by more than 1.6 million barrels per day starting May, with the effect already being felt at US gas pumps. The news sent shockwaves through global energy markets, causing Brent crude futures and WTI, the US benchmark, to surge about 6% in trading on Monday.
The immediate impact was seen in gasoline futures, which are expected to be passed onto American drivers much more quickly than oil prices. RBOB, the most closely watched wholesale gasoline price, rose by about 8 cents per gallon or 3% in morning trading.
Energy analysts are warning that this move will likely reignite inflation concerns and send US gas prices higher. Tom Kloza, global head of energy analysis for OPIS, a leading source for gas prices, believes OPEC's decision will "awaken the inflation monster" and could leave the White House feeling "shocked and major-time pissed." He predicts that US gas prices will rise to $3.80-$3.90 per gallon in relatively short order.
In the past year, US regular gas prices have been steadily declining since reaching a record high of $5.02 per gallon on June 14, 2022, due to factors such as the release of oil from the US Strategic Petroleum Reserve and concerns about a potential recession. However, Kloza believes that this move will make it difficult for US drivers to get back down to year-earlier prices, with prices potentially rising again if there are disruptions in production along the Gulf Coast.
With gas prices already approaching $3.51 per gallon, which is just below the average price of $3.53 on February 23, 2022, before Russia's invasion of Ukraine, this latest move by OPEC+ is likely to have a significant impact on consumers.
. And now this OPEC+ thingy is sending US gas prices soaring? Yeah, I can see why Tom Kloza would be worried - it's like the inflation monster is coming for our wallets...or should I say, our tank...of gas 
"
I'm shocked by this news! I remember when gas prices were around $2.50 per gallon and it was like, the best day ever to fill up my car 
! Now, with prices near $3.51 per gallon, it's like they're taking money out of our pockets 
. The OPEC+ alliance has got some nerve, slashing production by 1.6 million barrels a day? That's gonna give the inflation monster a whole lot more power to roam free 
!
. It's no wonder gas prices are already spiking and now it's gonna get even worse 
. And let's be real, $3.80-$3.90 per gallon? That's just nasty 
. And what about those who can't afford it, like students, low-income families, and seniors? It's gonna be tough on them.
. And don't even get me started on the inflation thing – that's just a smokescreen. I bet this is all part of some bigger agenda to destabilize the economy and push people towards alternative energy sources... or maybe something even more sinister 
. Mark my words, this is just the beginning.
6% surge in Brent crude futures is no joke, man... I remember when gas was like $3.51 per gallon, it's crazy how prices can drop from that 
. I was thinking of filling up my tank next week, now that might be a no-go 
And I thought the economy was supposed to be doing better... this news is kinda scaring me about inflation again 
Just got my gas bill and I'm already feeling like I'm being robbed 
. I mean, who needs that kind of pain in the wallet? 
. Like, do they not understand how economies work? 
. And now, just when we thought things were looking up after the last price dip, OPEC+ comes along and slaps us with another bill