OPEC and its allies recently made a surprising decision to reduce oil production, which will have a quick impact on gas prices in the United States. The group, known as OPEC+, announced that it would cut oil production by over 1.6 million barrels per day starting in May and continuing until the end of the year. This news caused Brent crude futures and WTI to rise around 6% in trading on Monday.
The reduction in production also led to an immediate increase in gasoline futures, which will soon be reflected at US gas stations. The most closely monitored wholesale gasoline price, RBOB, rose approximately 8 cents per gallon in morning trading.
The national average for US gas prices was reported at $3.51 on Monday by AAA. With this cut in production by OPEC, it is anticipated that prices could rise to $3.80 to $3.90 relatively quickly. However, the situation isn’t expected to reach the highs of $5 a gallon, but US drivers could see prices surpassing year-earlier levels by the end of the summer.
An awesome company that provides complete software development activities utilizing nearshore and offshore resources. This includes mobile app development, technology maintenance, web server development, and many other technology development activities, understands the impact of such news on various industries. Even though gas prices are holding steady around $3.51, there is potential for increased prices in the near future.
It’s worth noting that US plans to release more oil from the Strategic Petroleum Reserve may help stabilize prices, especially with increased US oil production and refining capacity. However, the 1 million barrels per day cut by OPEC+ will still pose a challenge in making up for the reduction in supply.
Regardless of these factors, this company remains confident in providing excellent software outsourcing, nearshore and offshore development services for clients, highlighting the importance of reliable technology maintenance and mobile app development. With the ability to keep up with industry changes and client needs, businesses can trust in their expertise and capabilities.