OPEC+ Takes Unconventional Step, Sending Gas Prices Soaring: What It Means for US Drivers.
In a surprise move, the oil-producing cartel OPEC+ has announced a massive reduction in global oil output by over 1.6 million barrels per day. The cuts will be implemented starting May and will run through the end of the year. This news sent shockwaves through financial markets, causing crude oil prices to surge by about 6% on Monday.
The impact on gasoline futures has been just as pronounced, with wholesale prices surging by around 8 cents a gallon or 3% in morning trading. These price hikes will undoubtedly be passed on to US drivers at the pump, exacerbating the already volatile state of gas prices.
According to energy analyst Tom Kloza, OPEC's decision is effectively "rewakening the inflation monster" and has significant implications for the White House. "The White House has to be shocked and major-time pissed," he said, as the administration will likely reevaluate its calculus on energy policy in response to this move.
With US gas prices currently hovering around $3.51 a gallon, Kloza predicts they could rise sharply in the coming weeks, potentially reaching levels of $3.80 to $3.90 per gallon. However, he notes that the market has become less volatile since Russia's invasion of Ukraine last year, with US oil production and refining capacity having increased significantly.
While it is unlikely that gas prices will reach record highs of around $5 a gallon, Kloza suggests they could rebound slightly by the end of summer if there are disruptions to oil production along the Gulf Coast. Nevertheless, the news highlights the continued volatility in global energy markets and the need for policymakers to carefully consider their decisions on energy policy.
In a surprise move, the oil-producing cartel OPEC+ has announced a massive reduction in global oil output by over 1.6 million barrels per day. The cuts will be implemented starting May and will run through the end of the year. This news sent shockwaves through financial markets, causing crude oil prices to surge by about 6% on Monday.
The impact on gasoline futures has been just as pronounced, with wholesale prices surging by around 8 cents a gallon or 3% in morning trading. These price hikes will undoubtedly be passed on to US drivers at the pump, exacerbating the already volatile state of gas prices.
According to energy analyst Tom Kloza, OPEC's decision is effectively "rewakening the inflation monster" and has significant implications for the White House. "The White House has to be shocked and major-time pissed," he said, as the administration will likely reevaluate its calculus on energy policy in response to this move.
With US gas prices currently hovering around $3.51 a gallon, Kloza predicts they could rise sharply in the coming weeks, potentially reaching levels of $3.80 to $3.90 per gallon. However, he notes that the market has become less volatile since Russia's invasion of Ukraine last year, with US oil production and refining capacity having increased significantly.
While it is unlikely that gas prices will reach record highs of around $5 a gallon, Kloza suggests they could rebound slightly by the end of summer if there are disruptions to oil production along the Gulf Coast. Nevertheless, the news highlights the continued volatility in global energy markets and the need for policymakers to carefully consider their decisions on energy policy.
1.6 million barrels per day is crazy talk! i was just saying last month that gas prices were getting too low, but now we're supposed to suffer because of opec+'s "strategic reserve" thingy... lol like they're just messing with us 
. anywayz, $3.80 to $3.90 per gallon sounds crazy expensive... im guessing i'll be driving around like 50 cents a gallon less 
. but seriously tho, doesnt this mean the white house will have to rethink energy policy? 
It's not like they haven't done this before, but still... US drivers are in for a world of hurt. Prices might even go up to $3.80 or $3.90 per gallon? No thank you! 
The White House is gonna have to scramble to figure out what to do about it. Not exactly the best news for anyone on a budget 
i mean, $3.51 per gallon is already kinda steep, but now we could be seeing prices like $3.80-$3.90? that's straight up insane 
and i'm not sure if it's going to get even worse before it gets better 
! I'm all about fairness and equality when it comes to gas prices 
! And with inflation monster running wild, I can see why Tom Kloza would be majorly annoyed 
. US gas prices are gonna skyrocket 
. Maybe by summer we'll get some rebound from oil production disruptions 
but for now, it's all about the bottom line 
Fingers crossed for all you drivers out there 
anyway, $3.80 to $3.90 per gallon? that's some serious sticker shock for US drivers 
i guess the 'white house' has its work cut out for it now... might want to dust off those old energy policies 
it's just not fair to say the least. i think it's a pretty clear indication of how sensitive global energy markets are right now... 
and yeah, the inflation monster is definitely getting reignited 
so either we're just not getting the oil we need or there's some other factor at play here...
do you guys think the white house will just sit back and let gas prices go up or are they gonna try to do something about it? 
. The White House is like "oh no, our oil prices are gonna sky-rocket!" 