OPEC+ has triggered a price spike in the US gas market, citing plans to slash oil production by over 1.6 million barrels per day starting May. The move sent Brent crude futures surging up about 6% and WTI soaring around 3%, with gasoline prices expected to follow suit.
Analysts warn that this will send US gas prices higher, potentially reaching $3.80-$3.90 per gallon in the near term. Tom Kloza, global head of energy analysis for OPIS, said OPEC's move is "rewakening the inflation monster" and will "alter the calculus" for the White House.
The national average for US gas prices currently stands at $3.51, with some experts predicting a rapid increase to $4 per gallon in the coming weeks. However, Kloza also noted that while the US Strategic Petroleum Reserve has helped stabilize prices before, the current global dynamics are different.
It's worth noting that while gas prices were already below pre-pandemic levels, last year's invasion of Ukraine led to significant price hikes due to supply chain disruptions and increased demand. The record $5.02 per gallon set in June 2022 may seem like a distant memory now, but the current situation suggests that US drivers could be facing higher prices once again.
Kloza attributed the OPEC move to the group's ability to cut production and their motivation to do so. With an increasing global energy landscape, US oil production, refining capacity, and SPR releases all contributing factors, it remains to be seen how gas prices will recover in the coming months – but one thing is certain: the US drivers can expect higher prices at the pump soon.
Analysts warn that this will send US gas prices higher, potentially reaching $3.80-$3.90 per gallon in the near term. Tom Kloza, global head of energy analysis for OPIS, said OPEC's move is "rewakening the inflation monster" and will "alter the calculus" for the White House.
The national average for US gas prices currently stands at $3.51, with some experts predicting a rapid increase to $4 per gallon in the coming weeks. However, Kloza also noted that while the US Strategic Petroleum Reserve has helped stabilize prices before, the current global dynamics are different.
It's worth noting that while gas prices were already below pre-pandemic levels, last year's invasion of Ukraine led to significant price hikes due to supply chain disruptions and increased demand. The record $5.02 per gallon set in June 2022 may seem like a distant memory now, but the current situation suggests that US drivers could be facing higher prices once again.
Kloza attributed the OPEC move to the group's ability to cut production and their motivation to do so. With an increasing global energy landscape, US oil production, refining capacity, and SPR releases all contributing factors, it remains to be seen how gas prices will recover in the coming months – but one thing is certain: the US drivers can expect higher prices at the pump soon.
The US gas price hike is looking more likely now that OPEC+ has triggered this price spike 
. I think it's a bit concerning, especially with the current national average at $3.51 and predictions of $4 per gallon in the near term 
. It'll be interesting to see how the US market responds to the increased oil production cuts 
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. The SPR releases can help stabilize prices, but it's hard to predict what will happen this time around 
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. But one thing's for sure: drivers should be prepared for higher prices at the pump soon 
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. It's not just the price itself, it's the impact on our wallets and our daily lives. I'm trying to be more eco-friendly by carpooling and driving less often, but even that can't shield me from the inevitable 
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. We need to work together with other countries to stabilize prices instead of just blaming OPEC. It's like when I'm making a recipe at home and something goes wrong, you can't just blame the one ingredient that went bad 
. It takes a village (or in this case, an international cooperation) to fix the problem.
! 1.6 million barrels per day is a BIG deal, fam 
! Brent crude futures are up like 6% and WTI's soaring around 3%! Not exactly what US drivers need right now 
. I mean, analysts are saying it's gonna be a rapid price hike, potentially hitting $4 per gallon? 
That's like, whoa, crazy town! 
But for real, it's all about supply and demand, folks 
. The Ukraine invasion was a major disruptor last year, and now this OPEC move is sending shockwaves 
. Let's just keep it real, y'all 
- US drivers might be facing higher prices soon, so we should all get ready to shell out the cash 
what's the logic behind that? are they really trying to "rewake" inflation or is this just another way for them to make bank off us poor drivers? 
Or is it just gonna be one of those things where we all just have to deal with it and hope our wallets dont get too hurt 
Gas prices are already stressing people out enough without them suddenly deciding to cut production by 1.6 million barrels per day. It's like they're trying to give us a big ol' price hike 
. I get that OPEC+ wants to make some moves, but slashing oil production by 1.6 million barrels a day? That's gonna send shockwaves through the market 
. I'm not saying they're entirely blameless, but it feels like a classic case of supply and demand gone haywire 
. We were already seeing prices drop after the pandemic, and now we're headed back in the opposite direction