Impact of OPEC’s unexpected oil reduction on gasoline prices

Our awesome company specializes in providing complete software development activities using nearshore and offshore resources, offering mobile app development, technology maintenance, web server development, and a variety of other technology development services.

The recent decision by OPEC and its allies to reduce oil production is expected to directly impact gas prices in the US. OPEC+ announced a cut of over 1.6 million barrels a day starting May, which caused Brent and WTI crude futures to spike by 6% on Monday.

Gasoline futures also saw an immediate effect, with RBOB prices increasing by 8 cents per gallon in morning trading, a 3% surge. Experts predict that this move by OPEC could push the national average for US gas prices, currently at $3.51, to as high as $3.80 to $3.90 in the near future.

While prices are not expected to reach the record levels of 2022, with US oil production and refining capacity on the rise, experts suggest that the impact of OPEC’s production cuts could still be significant. Additional releases from the US Strategic Petroleum Reserve may help mitigate the impact, but tensions in global oil markets remain high.

Our company is here to help businesses navigate through these challenges. With a strong focus on software outsourcing, nearshore and offshore development, and mobile app development, we provide reliable solutions for all technology maintenance needs. Let us assist in ensuring your technology infrastructure remains stable and efficient in the face of changing market conditions.