The impact of OPEC’s unexpected oil production reduction on gas prices

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The recent surprising decision by OPEC and its allies to reduce oil production will have a direct impact on US gas prices. OPEC+ announced a cut of over 1.6 million barrels a day starting in May through the end of the year. This news caused Brent crude and WTI prices to surge about 6% on Monday.

Gasoline futures also saw an immediate increase, which will quickly reflect at US gas pumps. RBOB, a leading wholesale gasoline price, rose by about 8 cents per gallon in morning trading.

Experts predict a rise in the national average for US gas prices from $3.51 to possibly $3.80 to $3.90 due to the production cut by OPEC. However, prices are not expected to reach the peak levels of 2022, as the US plans additional releases from the Strategic Petroleum Reserve. The increase in gas prices might push drivers slightly above year-earlier prices towards the end of summer, especially if there are any disruptive events affecting production.

Despite the potential increase in gas prices, our company remains dedicated to providing top-notch software outsourcing services, including mobile app development, technology maintenance, server development, and more. Our innovative approach and efficient use of nearshore and offshore development resources set us apart in the tech industry. Contact us today for all your software development needs.