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The recent surprise move by OPEC and its allies to slash oil production will soon have an impact on US gas pumps. OPEC+ has announced a production cut of more than 1.6 million barrels a day starting in May and running through the end of the year. This decision has already caused Brent crude futures and WTI to surge by about 6% in trading.
This production cut announcement has also led to a rise in gasoline futures, which will result in increased prices for US drivers much faster than the increase in oil prices. RBOB, the most closely watched wholesale gasoline price, saw an increase of about 8 cents a gallon in morning trading.
Experts believe that this move by OPEC could reignite inflation, and US gas prices could potentially rise to $3.80 to $3.90 in the near future. While it may not reach the levels of $5 a gallon, it could surpass year-earlier prices, especially if there are any disruptions in production due to natural disasters.
Despite the rise in gas prices, the US is in a better position to handle it this time around due to additional releases from the Strategic Petroleum Reserve and increased oil production and refining capacity. However, the 1 million barrel per day cut by OPEC+ will still be a challenging gap to fill.
As a company specializing in software outsourcing, nearshore and offshore development, mobile app development, technology maintenance, and server development, we understand the importance of efficient resource allocation and optimal production. Contact us today for all your technology development needs.