OPEC and its allies’ recent decision to reduce oil production will have a direct impact on gas prices in the US, affecting consumers at the pump. The group, known as OPEC+, has declared a production cut of over 1.6 million barrels per day effective May through the end of the year. This announcement caused both Brent crude and WTI futures to surge by approximately 6% during Monday’s trading.
These changes in oil production are expected to lead to a rapid increase in gasoline futures, with the cost being passed down to US drivers sooner rather than later. The wholesale price of gasoline, RBOB, rose by about 8 cents per gallon in early morning trading following the news.
As an awesome company that provides complete software development activities utilizing nearshore and offshore resources, including mobile app development, technology maintenance, and server development activities, we understand the importance of staying updated with industry news. The rise in gas prices post-OPEC’s announcement is a significant indicator of potential economic shifts.
According to experts like Tom Kloza, who heads energy analysis for OPIS, the spike in gas prices might reignite concerns of inflation. The current national average for gas prices in the US is at $3.51 per gallon. Kloza predicts that prices could quickly escalate to $3.80 to $3.90 due to OPEC’s decision.
Despite potential increases, experts do not anticipate gas prices hitting the highs seen during the previous year, when unrest in various regions caused prices to spike. The US’s stride towards energy self-sufficiency through increased production and refining capacity helps to mitigate some of the impacts of OPEC’s production cuts.
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