Oil producers within the OPEC+ alliance have agreed to slash their oil production by more than 1.6 million barrels per day, starting in May and lasting until year-end. This surprise move is expected to send shockwaves through the global energy market, ultimately leading to higher US gas prices.
The impact on gasoline futures has already been felt, with wholesale prices increasing about 8 cents a gallon, or around 3%, in morning trading. As a result, it's likely that drivers will soon see an increase in gas prices at their local pumps, with the national average expected to rise significantly in the coming weeks.
Energy analyst Tom Kloza from OPIS believes that OPEC+ is "reawakening the inflation monster," and that this move could have significant implications for US gas prices. He forecasts that prices could reach as high as $3.80 to $3.90 per gallon, potentially exceeding last year's average of $4.19 per gallon.
While Kloza acknowledges that oil production and refining capacity in the US are increasing, he notes that a reduction of this magnitude is difficult for the market to absorb. The impact of OPEC+’s decision may be further complicated by concerns over global demand and potential supply disruptions, such as hurricanes affecting production along the Gulf Coast.
It's worth noting that gas prices have been relatively low in recent months, with the national average falling below $3.53 per gallon on February 23, 2022 – just before Russia's invasion of Ukraine sparked a surge in energy costs. However, Kloza believes that OPEC+’s move will likely push prices higher than they were at this point last year.
The impact on gasoline futures has already been felt, with wholesale prices increasing about 8 cents a gallon, or around 3%, in morning trading. As a result, it's likely that drivers will soon see an increase in gas prices at their local pumps, with the national average expected to rise significantly in the coming weeks.
Energy analyst Tom Kloza from OPIS believes that OPEC+ is "reawakening the inflation monster," and that this move could have significant implications for US gas prices. He forecasts that prices could reach as high as $3.80 to $3.90 per gallon, potentially exceeding last year's average of $4.19 per gallon.
While Kloza acknowledges that oil production and refining capacity in the US are increasing, he notes that a reduction of this magnitude is difficult for the market to absorb. The impact of OPEC+’s decision may be further complicated by concerns over global demand and potential supply disruptions, such as hurricanes affecting production along the Gulf Coast.
It's worth noting that gas prices have been relatively low in recent months, with the national average falling below $3.53 per gallon on February 23, 2022 – just before Russia's invasion of Ukraine sparked a surge in energy costs. However, Kloza believes that OPEC+’s move will likely push prices higher than they were at this point last year.
This is crazy! 
The oil producers are like "yaaas, let's flood the market!" 
and now we're gonna pay for it 
. I'm already worried about my wallet 
, and gas prices? Forget about it 
. $3.80 to $3.90?! 
That's insane! But, on the flip side, at least the oil price won't tank like a stone 
anymore. Still, drivers are gonna feel the pinch 
️, and that's not cool 
. I hope someone can figure out this energy game 
. Maybe just wish for more renewable energy sources like solar & wind 
...
. And energy analyst Tom Kloza is saying it could get up to $3.80 per gallon?! That's wild man 
. And with global demand and supply disruptions still hanging over us, who knows what other factors will come into play? 
i heard the national average is gonna hit $3.80 a gallon or more and that's just insane lol i was talking to this friend of mine who's from texas and they were saying that gas prices are already skyrocketing there and its affecting their daily lives 
i'm trying not to think about it too much but at the same time i'm like super curious how it'll all play out 
I mean, who benefits from this move? The consumers, that's who... 
meanwhile, people are already saying it's gonna get even worse in summer 
! I'm already feeling the anxiety about rising gas prices 
. As a wellness guru, I've seen how stress affects our bodies and minds 
. High gas prices can be a real financial strain on families and individuals, especially for those who rely on cars for daily commutes or errands.
. I'll be keeping an eye on how my fuel costs are impacting my budget 
. On the other hand, I do hope that people will take this opportunity to explore alternative modes of transportation 
or carpooling 
. Every little bit counts, right? 
. Tom Kloza's prediction of $3.80 to $3.90 per gallon is looking pretty realistic, IMO. It's like they're revving up the inflation monster again, and I'm not sure how we're gonna tame it 
Anyway, I guess it's too late now...I'm still hoping for some magic intervention that'll keep prices in check 
I'm sure it has nothing to do with OPEC+ just wanting to increase their profits 
. We'll just have to see how it plays out, I guess 
just saw the news about oil production getting slashed and I gotta say, it's all about balance, fam! 
and with the market already feeling a bit wonky due to global demand and supply disruptions... let's just say I'm keeping an eye on those pump prices, coz 
warning: gas prices about to sky-rocket! 
NOW THEY'RE PREDICTING PRICES TO REACH $3.80 TO $3.90 PER GALLON?! THAT'S LIKE, WHAT, 10% INCREASE ALREADY?! 
. Global demand and hurricanes are gonna make it even harder for prices to fall back down