Gas prices are projected to climb dramatically as a result of a sudden supply cut by OPEC members right before the lucrative summer driving season.
According to Phil Flynn, a senior analyst at Price Futures Group and contributor to FOX Business, the reductions in the production of up to 1.15 million barrels per day might result in an increase of at least 26 cents in the price of gasoline.
Regular petrol cost around $3.50 on average, as reported by AAA. If Flynn’s forecast comes true, it’s possible that the price of a gallon of petrol will go up to more than $4 before the summer arrives.
As a result of the recent events, the price of a barrel of oil in the United States climbed to more than $80.
As a result of the recent events, the price of a barrel of oil in the United States climbed to more than $80.
Flynn pointed out that even if OPEC didn’t make its move, prices would rise by 10 to 15 cents when refineries switched to their summer gasoline blend.
This comes at a time when consumers are being hit hard by rising inflation, which jumped 6% year over year in February.
Less than 60 days away, however, comes hurricane season, which may impede oil production and further increase gas prices, according to Andy Lipow, president of Lipow Oil Associates.
In the past, Lipow has warned that a severe hurricane striking the Gulf Coast, where 15% of U.S. oil production and over 45% of U.S. refinery capacity are situated, may cause a substantial supply interruption and drive up prices.
According to EIA statistics, oil output reached about 12.5 million barrels per day in January, the highest level since March 2020.
