(FixThisNation.com) – The announcement by OPEC+, a group of oil producers, that they were going to be cutting down oil production is expected to lead to an increase in gasoline prices in the coming weeks. If gas prices spike up again, it could lead to problems for both consumers and President Biden.
Over the weekend, OPEC+ made a surprise announcement that they would be cutting down oil production by more than 1 million barrels per day. From those nearly half of them will be cut from Saudi Arabia’s production. Following the announcement, the price for oil jumped up with U.S. benchmark West Texas Intermediate prices rising from around $76 per barrel to close to $80 per barrel. International benchmark Brent crude also showed an increase from approximately $80 per barrel to about $86 per barrel.
President Biden on Monday stated that OPEC+’s move was actually going to have only a minimal impact and that things would not “be as bad as you think.” Despite these claims though experts are expecting to see a difference in the price at the pump.
Andrew Lipow, president of consulting firm Lipow Oil Associates, told The Hill that in his opinion the price for gasoline, which is currently around $3.50 per gallon, is going to be increasing by around 12 to 16 cents per gallon. Similarly, Tom Kloza, global head of energy analysis at the Oil Price Information Service also said that he is expecting a 10 to 12 cent increase in the price of a gallon immediately, and he suspects that further increases might occur later in the year.
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