OPEC+ Unleashes Inflationary Pressure on US Gas Prices
The Organization of the Petroleum Exporting Countries (OPEC)+ has taken a surprise step, slashing its oil production by over 1.6 million barrels per day starting from May. This move will soon have a significant impact on gasoline prices in the US, sending shockwaves through the market and fueling inflationary pressures.
The reduction in crude oil supply has led to an immediate surge in gasoline futures, with RBOB, the most closely watched wholesale price, jumping about 8 cents per gallon or 3% in morning trading. This increase will be felt by US drivers much more quickly than the corresponding rise in oil prices, which may only take a few weeks to materialize.
Energy analyst Tom Kloza from OPIS notes that OPEC's move is reawakening the "inflation monster," worrying the White House. He forecasts that gas prices could reach as high as $3.80 to $3.90 per gallon in the coming days, which would be above last year's average of $4.19 per gallon.
Kloza attributes this surge to the US government's strategic reserve releases and increased oil production capacity. However, OPEC's decision is expected to outstrip these efforts, leaving prices vulnerable to fluctuations in global supply and demand.
While some analysts predict that gas prices may stabilize by the end of summer, Kloza cautions that a hurricane or other disruptions along the Gulf Coast could push prices back up. The last time gas prices hit $5 per gallon was on June 14, 2022, following Russia's invasion of Ukraine and subsequent market turmoil.
For now, US drivers are bracing for higher fuel costs, with the national average standing at $3.51 per gallon. As OPEC+ continues to manipulate global oil supplies, it remains to be seen whether these efforts will ultimately drive prices back down or reignite inflationary pressures on the US economy.
The Organization of the Petroleum Exporting Countries (OPEC)+ has taken a surprise step, slashing its oil production by over 1.6 million barrels per day starting from May. This move will soon have a significant impact on gasoline prices in the US, sending shockwaves through the market and fueling inflationary pressures.
The reduction in crude oil supply has led to an immediate surge in gasoline futures, with RBOB, the most closely watched wholesale price, jumping about 8 cents per gallon or 3% in morning trading. This increase will be felt by US drivers much more quickly than the corresponding rise in oil prices, which may only take a few weeks to materialize.
Energy analyst Tom Kloza from OPIS notes that OPEC's move is reawakening the "inflation monster," worrying the White House. He forecasts that gas prices could reach as high as $3.80 to $3.90 per gallon in the coming days, which would be above last year's average of $4.19 per gallon.
Kloza attributes this surge to the US government's strategic reserve releases and increased oil production capacity. However, OPEC's decision is expected to outstrip these efforts, leaving prices vulnerable to fluctuations in global supply and demand.
While some analysts predict that gas prices may stabilize by the end of summer, Kloza cautions that a hurricane or other disruptions along the Gulf Coast could push prices back up. The last time gas prices hit $5 per gallon was on June 14, 2022, following Russia's invasion of Ukraine and subsequent market turmoil.
For now, US drivers are bracing for higher fuel costs, with the national average standing at $3.51 per gallon. As OPEC+ continues to manipulate global oil supplies, it remains to be seen whether these efforts will ultimately drive prices back down or reignite inflationary pressures on the US economy.
think opecs move is gonna have bigger impact than ppl think...gas prices dont just jump up cuz of 1.6 mil barrels less oil but its also about speculators and futures market gettin all worked up 
. plus, if they can really control supply thats bad news for the us & everyone else too 
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gotta say, I'm loving how OPEC is playing chicken with the world! 
slashing production by 1.6 million barrels a day? that's just gonna make me wanna fill up my tank ASAP and hope it doesn't get too expensive 
like Kloza said, this move is gonna reignite inflationary pressures on the US economy and I'm not sure if they'll be able to handle it 
no thanks! and what's with all these hurricanes and disruptions along the Gulf Coast? can't we just get some stability in our fuel prices for once? 
. I remember that last time we hit $5 per gallon in 2022 and how it affected everyone's wallet 
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, i'm kinda worried about the inflation monster getting out of control here, they're forecasting prices to hit like $3.80-$3.90 per gallon which is crazy compared to last year's avg of $4.19 
, i hope they can figure out a way to balance things out but for now it's anyone's guess what's gonna happen next 
. The thought of a hurricane or other disruptions pushing prices back up is just too much... I need to start looking for ways to save money ASAP 
We should be keeping an eye on things and not just blindly following the hype.
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. I'm hoping that the summer ends soon so things calm down, but until then, I'll be keeping an eye on those prices 
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and what's up with OPEC+ just deciding to control everything btw, can't they just let supply and demand do their thing? it feels like we're living in a video game where one wrong move can send prices soaring 
, Kloza's prediction of $3.80-$3.90 is looking more likely by the day 
, gonna be interesting to see how this plays out and if opec's move reignites inflationary pressures 
think this is a good thing for the economy though 
they're just responding to market demand and trying to make a buck 
so let's not be too quick to judge 
. Mark my words, gas prices are gonna keep going up and up until something breaks, like a hurricane hitting the Gulf Coast 
. We need to find better ways to address our energy needs, not just play games with global supply and demand 
! 8 cents per gallon might not seem like much, but trust me, it adds up quick 
. Okay, so energy analyst Tom Kloza says OPEC+ is "reawakening the inflation monster"... yeah, because that's not a scary phrase at all 
. Let's just hope the summer ends without another hurricane hitting the Gulf Coast...