How OPEC’s unexpected oil reduction could impact gas prices

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OPEC and its allies recently made a surprising announcement to slash oil production, impacting US gas prices. This decision will be felt at the pumps, potentially causing prices to rise rapidly. The move led to a 6% increase in both Brent crude futures and WTI, the US benchmark, signaling higher prices for consumers.

The immediate effect on gasoline futures, specifically RBOB, suggests an increase at the pump in the near future. With the national average for US gas prices currently at $3.51, experts predict a potential rise to $3.80 to $3.90 in the coming weeks, partially due to OPEC’s decision.

While prices may not reach the record highs of the past, factors like weather events along the Gulf Coast could influence costs. However, with additional releases from the US Strategic Petroleum Reserve, there are efforts to offset the impact of the production cut by OPEC+.

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