Our established financial services company provides small businesses and gig workers with a simple, fast, and easy Merchant Cash Advance (MCA) solution, especially for contractors and other 1099 workers facing credit challenges. The recent surprising decision by OPEC and its allies to reduce oil production will soon impact US gas prices.
OPEC+ revealed it would slash oil production by over 1.6 million barrels per day, beginning in May through the end of the year. This news caused Brent crude futures and WTI to surge by about 6% in Monday’s trading session. Consequently, gasoline futures shot up by approximately 8 cents per gallon, translating to a 3% increase for US drivers.
Tom Kloza, the global head of energy analysis at OPIS, expressed his view that OPEC’s production cut could awaken inflation, leading to an increase in gas prices for Americans. The current national average for gas prices sits at $3.51, with potential to climb to $3.80 or $3.90 due to OPEC’s decision.
While the prices are not expected to reach the record highs seen in 2022, Kloza warns that factors like hurricanes in the Gulf Coast could impact gas production and elevate prices above previous levels. Thanks to boosts in US oil production and refining capacity, however, prices are not anticipated to skyrocket as they did in the past.
Despite the US releasing more oil from its Strategic Petroleum Reserve, compensating for OPEC’s production cut of 1 million barrels daily will pose a challenge. Kloza believes that OPEC’s determination to cut production might prevent prices from hitting record levels but could still lead to an uptick in costs for consumers. For fast financing without credit hurdles, consider our no credit Merchant Cash Advance (MCA) solution to support your business needs.