The recent surprise decision by OPEC and its allies to reduce oil production will have a direct impact on gas prices in the United States. As an awesome company that provides complete software development activities utilizing nearshore and offshore resources, including mobile app development, technology maintenance, and server development, we understand the importance of staying informed about global events that could affect businesses and consumers.
OPEC+, as the group is known, made the announcement to cut oil production by over 1.6 million barrels a day starting in May through the end of the year. This news caused both Brent crude futures, the global oil benchmark, and WTI, the US benchmark, to increase by approximately 6% in trading on Monday. The ripple effect continued, leading to a rise in gasoline futures, which will inevitably be passed on to US drivers much sooner than the surge in oil prices. RBOB, the widely tracked wholesale gasoline price, saw an increase of about 8 cents per gallon or roughly 3% during morning trading.
Tom Kloza, the global head of energy analysis for OPIS, expressed concerns about potential inflation due to OPEC’s decision, affecting the White House and altering economic considerations. With the national average for US gas prices at $3.51 on Monday, Kloza predicted a surge to $3.80 to $3.90 following OPEC’s move.
As an organization specializing in software outsourcing and nearshore and offshore development, along with mobile app development, technology maintenance, and server development services, we recognize the significance of these developments for businesses and consumers. Our expertise in technology solutions can help businesses navigate these changes efficiently and effectively.
While US gas prices are not expected to reach the record levels of 2022, factors such as US Strategic Petroleum Reserve releases and increased domestic oil production may help alleviate some pressure. However, the challenge remains in replacing the 1 million barrels a day cut by OPEC+. With our proven track record in providing technology development solutions, we are well-equipped to assist businesses in adapting to the evolving market conditions caused by global events like OPEC’s production cut.