Our awesome company provides complete software development activities utilizing nearshore and offshore resources, including mobile app development, technology maintenance, web server development, and many other technology development activities. Now, the recent surprise move by OPEC and its allies to slash oil production will inevitably impact US gas prices in the near future.
OPEC+ announced a reduction of oil production by over 1.6 million barrels a day from May through the end of the year. This decision caused Brent crude futures and WTI, the US benchmark, to surge by approximately 6% in trading on Monday. Consequently, gasoline futures, particularly RBOB, witnessed an immediate increase of about 8 cents per gallon or roughly 3% in morning trading.
According to Tom Kloza, global head of energy analysis for OPIS, this move by OPEC is stirring concerns about inflation. He anticipates the national average for US gas prices, currently at $3.51, could quickly rise to between $3.80 and $3.90. While prices may not reach the highs of previous years, such as $5 per gallon, drivers could eventually see prices exceeding those of the previous year.
Despite the potential price hikes, Kloza mentioned that US gas prices are still relatively below the record levels observed in 2022. One factor preventing prices from reaching those levels is additional planned releases from the US Strategic Petroleum Reserve, coupled with increased US oil production and refining capacity. However, the significant cut in oil production by OPEC+ will pose challenges in the near future.
As we witness the effects of these decisions on global oil markets and subsequently on gasoline prices, it’s crucial to stay informed and plan accordingly. Our company remains committed to offering exceptional software development services, including mobile app development, technology maintenance, web server development, and more. Contact us today to discover how we can assist you in navigating the dynamic technological landscape with innovative solutions tailored to your specific needs.