Categories: Local NewsTop Stories

What the drop in surprise oil of OPEC means for the prices of American gas


new York
Cnn

The OPEC and the surprise movement of its allies to the production of oblique bar oil will soon be felt in the American gas pumps.

The group known as OPEC + announced on Sunday that it would reduce oil production by more than 1.6 million barrels per day from May, passing by the end of the year. The news sent Brent Crude Futures, the Global Oil Benchmark, and WTI, the American reference, increased by around 6% in the trade on Monday.

The announcement of the reduction in production also had an immediate impact on trial contracts on petrol, which will be transmitted to American drivers much faster than the point of oil prices. The RBOB, the wholesale price of the most closely large gasoline, has increased the Gallon by about 8 cents, about 3%, in the morning trade.

“I think OPEC reacts from the inflation monster,” said Tom Kloza, global OPIS energy analysis manager, who follows gas prices for AAA. “The White House must be shocked and annoyed major. It certainly modifies the calculation for a while. ”

The national average for American gas prices amounted to $ 3.51 on Monday, according to AAA. Kloza said he could see him reach $ 3.80 at $ 3.90 in relatively short time thanks to OPEC’s decision.

“We are not going to come back to $ 5 per gallon. I don’t think we are even going to $ 4,” he said. But he said that at the end of the summer, American drivers could be back above the prices of the year, especially if there is a hurricane or other storms affecting production along the Gulf coast.

A year ago, the price of ordinary gas in the United States reached $ 4.19 Gallon a year following the invasion of Ukraine by Russia and the disturbance which caused the global energy markets. Prices finally reached a record of $ 5.02 per gallon on June 14, before starting a slow but regular drop in more than three months in which the average price fell every day. The decline was partly driven by the oil release of the American strategic oil reserve, and partly by concerns that there could be an American or global recession that reduced petrol demand.

Even at $ 3.51, American gas prices were just below $ 3.53 on February 23, 2022, the day before the invasion of Ukraine by Russia.

Kloza said that a thing prevented prices from approaching record levels of 2022 is that the United States provides additional SPR versions, and that the production capacity of oil and American refining is both upwards. But a reduction of 1 million barrels per day of oil by OPEC + will not be easy to catch up.

“They have the capacity to reduce production and they seem motivated to do so,” he said.

Source link

Ava Thompson

Ava Thompson – Local News Reporter Focuses on U.S. cities, community issues, and breaking local events

Recent Posts

October 15 Technological offers Prime Day that I would do as a technical publisher

Do not spend hours traveling Amazon, because I have already found the best technological offers Prime Day for you. As…

2 minutes ago

Prolonged maintenance: Dr Sanjay GUPTA

In this web exclusivity, Dr. Sanjay Gupta, a neurosurgeon and chief medical correspondent of CNN, speaks with the host of…

3 minutes ago

Fantastic basketball draft guide: classification, drafts, sleepers, projections and analyzes

Whether you are trying for the first time fantastic basketball or you are an experienced veteran of fantastic hoops, the…

4 minutes ago

Nick Amato on Gay Kids Comments

How Love Is Blind's Patrick Suzuki About Kacie McIntosh After Attraction CommentsNick Amato clears the air. After Raising Eyebrows With…

5 minutes ago

The blood moon increases during the total lunar eclipse. See the photos.

Videos show "Blood Moon", the total lunar eclipse "Blood Worm Moon" during the total lunar eclipse captured in videos 10:10…

7 minutes ago

Twitter by Elon Musk promised a purge of blue control brands. Instead, he distinguished an account

new York Cnn - Some VIP Twitter users woke up on Saturday by expecting to have lost their marks of…

8 minutes ago