What OPEC's surprise oil cut means for gas prices

[Yo_Mama_Been_Loggin]

The group known as OPEC+ announced Sunday it would cut oil production by more than 1.6 million barrels a day starting in May, running through the end of the year. The news sent both Brent crude futures, the global oil benchmark, and WTI, the US benchmark, up about 6% in trading Monday.

The production cut announcement also had an immediate impact on gasoline futures, which will be passed onto US drivers much more quickly than the spike in oil prices. RBOB, the most closely watched wholesale gasoline price, was up about 8 cents a gallon, or about 3%, in morning trading.

“I think OPEC is reawakening the inflation monster,” said Tom Kloza, global head of energy analysis for OPIS, which tracks gas prices for AAA. “The White House has to be shocked and major-time pissed. It certainly alters the calculus for a while.”

The national average for US gas prices stood at $3.51, on Monday, according to AAA. Kloza said he could see it getting up to $3.80 to $3.90 in relatively short order thanks to the move by OPEC.

https://www.msn.com/en-us/money/markets/what-opec-s-surprise-oil-cut-means-for-gas-prices/ar-AA19qpkZ

I'm old enough to remember the Arab oil embargo in 1973. If you needed gas for your vehicle you needed to allot extra time to find a station that had it and then wait in line to access the pumps.

A half a century later we're still dependent on countries lead by despots with medieval mindsets. We can do better.

[gay texan]

1. It means my part of Texas is about to get insane

The oil companies are going to come out of the woodwork

[crickets]

2. It means the OPEC countries want to make Biden's job

and a run for re-election as difficult as possible. The Carter era is the first thing I thought of when I saw this.
Screw them.

[hippywife]

3. Already just over $3/gal again here in OK as of yesterday. nt