OPEC+ Unleashes 'Inflation Monster': Oil Production Cut Sends US Gas Prices Soaring.
In a surprise move, OPEC+ announced on Sunday that it will slash oil production by over 1.6 million barrels per day starting in May and ending in December. The decision sent shockwaves through the global energy market, causing Brent crude futures and WTI, the US benchmark, to jump about 6% in Monday's trading session.
The impact of this move was immediately felt at the pump, with gasoline futures soaring by around 8 cents per gallon, or 3%, as RBOB, the most closely watched wholesale gasoline price, shot up. This price hike will likely be passed on to US drivers more quickly than the corresponding spike in oil prices.
Energy analyst Tom Kloza described OPEC's move as a "reawakening of the inflation monster," stating that it would have a significant impact on US gas prices and may even push them above $4 per gallon. Kloza also noted that the average US regular gas price had dropped significantly since February 2022, falling from around $5.02 per gallon to $3.51 currently.
However, Kloza cautioned that despite the initial jump in prices, there are a few factors working against a sharp increase. The US Strategic Petroleum Reserve is set to release more oil, and domestic production and refining capacity have increased since 2022. Nevertheless, a cut of 1.6 million barrels per day by OPEC+ will be challenging to offset.
Despite this, Kloza remained bullish on the potential for gas prices to rise in the coming months, particularly if global production is disrupted by events such as hurricanes or storms affecting the Gulf Coast production area. While it's unlikely that US drivers will see gas prices reach $5 per gallon again, there's a possibility they could return above year-earlier levels by summer's end.
As one thing stands out, however – despite the current surge in oil prices, US gas prices remain remarkably close to where they were at around February 2022. This is largely due to the increased capacity of the US refining sector and the planned releases from the Strategic Petroleum Reserve, which have helped keep prices somewhat stable. Nevertheless, OPEC's production cut sends a clear message that global energy markets are shifting in unexpected ways, and US drivers can expect prices to continue rising in the coming weeks and months.
In a surprise move, OPEC+ announced on Sunday that it will slash oil production by over 1.6 million barrels per day starting in May and ending in December. The decision sent shockwaves through the global energy market, causing Brent crude futures and WTI, the US benchmark, to jump about 6% in Monday's trading session.
The impact of this move was immediately felt at the pump, with gasoline futures soaring by around 8 cents per gallon, or 3%, as RBOB, the most closely watched wholesale gasoline price, shot up. This price hike will likely be passed on to US drivers more quickly than the corresponding spike in oil prices.
Energy analyst Tom Kloza described OPEC's move as a "reawakening of the inflation monster," stating that it would have a significant impact on US gas prices and may even push them above $4 per gallon. Kloza also noted that the average US regular gas price had dropped significantly since February 2022, falling from around $5.02 per gallon to $3.51 currently.
However, Kloza cautioned that despite the initial jump in prices, there are a few factors working against a sharp increase. The US Strategic Petroleum Reserve is set to release more oil, and domestic production and refining capacity have increased since 2022. Nevertheless, a cut of 1.6 million barrels per day by OPEC+ will be challenging to offset.
Despite this, Kloza remained bullish on the potential for gas prices to rise in the coming months, particularly if global production is disrupted by events such as hurricanes or storms affecting the Gulf Coast production area. While it's unlikely that US drivers will see gas prices reach $5 per gallon again, there's a possibility they could return above year-earlier levels by summer's end.
As one thing stands out, however – despite the current surge in oil prices, US gas prices remain remarkably close to where they were at around February 2022. This is largely due to the increased capacity of the US refining sector and the planned releases from the Strategic Petroleum Reserve, which have helped keep prices somewhat stable. Nevertheless, OPEC's production cut sends a clear message that global energy markets are shifting in unexpected ways, and US drivers can expect prices to continue rising in the coming weeks and months.
opec+ just decided to turn up the heat and now gas prices are gonna get a serious hike, not that we haven't seen this before... but seriously though, 1.6 million barrels per day cut is a big deal and i'm kinda surprised they're doing this in may 
it's like they're playing with fire... or rather, gasoline prices 
, I gotta say, OPEC+ is really messing with our heads right now! Like, they just slashed oil production by 1.6 million barrels per day... what were they thinking? 
.
. And have you seen the US Strategic Petroleum Reserve? That's like a oil-saving superhero right there 
.
. I mean, 1.6 million barrels per day is a big deal, especially when you consider how much it'll impact the US gas prices 
.
. It just goes to show how much of an impact the US refining sector and the Strategic Petroleum Reserve have had on keeping prices in check 
. It's like they're saying, "Hey, we're taking control of our own destiny and adjusting our output accordingly." Which, in turn, will likely affect other countries' economies and consumers 
.
. One thing's for sure: US drivers can expect prices to continue rising in the coming weeks and months 
️.
Gas prices just got a serious boost from OPEC+. They're basically telling the world "we're cutting supply". Expect $4+ per gallon soon 
- it's like the price of gasoline is trying to come back from its February 2022 lows 
.
. I know OPEC+ is trying to control global energy markets, but it feels like they're playing this super high-stakes game where one tiny change can have such a huge impact 
. Maybe we'll finally get some relief from these skyrocketing gas prices soon? But, for now, I'd say buckle up (pun intended 
) and enjoy the wild ride while it lasts!
what the heck is going on with oil prices?! i'm so over these crazy fluctuations it's like opec+ has a personal vendetta against us americans 
anyway, gotta admit tho, i am a bit worried about the future of gas prices. i know it's not like opec has control over everything but still... 
The inflation monster is waking up and it's not looking pretty. 6% jump in oil prices? That's crazy talk! And now we're expected to see gas prices push above $4 a gallon? No thanks! I'm still trying to get used to the $3.51 average price from last year, let alone going back that far.
. and btw, those predictions of $4+ per gallon? more like $5-6 per gallon if u ask me 
.
, it's only a matter of time before we see some price hikes at the pump 
OPEC+ might be trying to send a message about their commitment to production cuts, but let's not forget that the US is still largely self-sufficient when it comes to oil production 
.
. The US Strategic Petroleum Reserve releasing more oil and domestic production capacity increasing since 2022 are definitely factors working against a sharp increase in prices 
. But I still think there's room for gas prices to rise, especially if global production is disrupted by bad weather or conflicts in major oil-producing regions 
.
. Maybe we'll see some price volatility as we head into summer?
opec+ just dropped a bombshell and its gonna take forever to get back down from here 
. It's like, yeah, oil production cut = inflation = higher prices 
. But let's be real, with OPEC+ cutting 1.6 million barrels per day, we're looking at a pretty volatile ride 
!
But seriously, $4 per gallon?! That's like, crazy talk! 
. And yeah, Tom Kloza's "inflation monster" analogy fits perfectly - this move is definitely gonna push gas prices up 
. The Strategic Petroleum Reserve is releasing more oil, and domestic production has increased since 2022 
. One thing's for sure, though: OPEC+ is sending a clear message that global energy markets are shifting in unexpected ways