What OPEC’s surprise oil cut means for US gas prices
new York
Cnn
–
The surprise movement to bend OPEC and its allies’ oil production will soon be felt on the US gas pumps.
The group, known as OPEC+, announced on Sunday that it will reduce oil production by more than 1.6 million barrels per day starting from May to the end of the year. News, on Monday, both Brent Ham Futures, global oil comparison and US comparison WTI’yi increased by about 6%.
The announcement of the production cut immediately had an immediate impact on gasoline futures that would be transferred to US drivers much faster than the increase in oil prices. RBOB, the most watched wholesale gasoline price, increased about 8 cents in the morning trade or an increase of approximately 3%.
“OPEC inflation monster is awakening again,” Tom Kloza, the head of Global Energy Analysis for OPIS for AAA, said. “The White House must be shock and big times should be angry. It certainly changes the calculus for a while.”
According to AAA, the average national for US gas prices is $ 3.51 on Monday. Claza said that thanks to OPEC’s movement, he could see that he had risen to $ 3.80 to $ 3.90 in a relatively short time.
“We won’t go back to a gallo for $ 5. I don’t think we’re going to go up to $ 4,” he said. However, at the end of the summer, US drivers, especially if there are a hurricane or other storms that affect production along the Gulf coast, may be above the elderly prices of the year, he said.
A year ago, an average US normal gas price was a $ 4.19 galliture after Russia’s occupation of Ukraine and the corruption that caused the world’s energy markets. Finally, the prices reached $ 5.02 in a galon on June 14 before a slow but stable decline for more than three months. The decline was directed with concerns that the release of oil from the US strategic oil reserve and that there may be a US or global recession that reduces the demand for gasoline.
Even from $ 3.51, the US gas prices were just below average on February 23, 2022 the day before Russia’s invasion of Ukraine.
Claza said that something that prevents prices from reaching a place close to 2022 record levels, the US’s additional bulletin planning and US oil production and refined capacity has increased both. However, the makeup of 1 million barrels of oil per day by OPEC+ will not be easy.
“They have the ability to reduce production and they look motivated to do it,” he said.
