Gas Prices Set To Skyrocket

On Monday, there was a sudden surge in the price of oil as OPEC+ made an unexpected announcement that it would be reducing its production of crude oil.

According to Fox, in the early hours of trading, the U.S. benchmark for oil, West Texas Intermediate crude, experienced a surge of over 6%, reaching approximately $80.23 per barrel. Meanwhile, the international benchmark, Brent crude, rose by 5.35%, hitting around $83.34 per barrel. This rise in oil prices represents the most significant increase in nearly a year.

On Sunday, OPEC+ – the alliance of oil-producing countries led by Saudi Arabia and Russia – made a commitment to reduce their collective output by 1.15 million barrels per day. This decision came as a surprise to many traders since OPEC+ delegates had indicated in the past few weeks that they intended to maintain the existing output policy, even in the aftermath of the banking crisis that caused a sharp drop in prices.

Saudi Arabia has announced that beginning in May and continuing through to the end of 2023, there will be voluntary and “precautionary” reductions in oil output intended to maintain the stability of the oil market. This was confirmed in a statement released by the Saudi Arabian authorities.

In October, OPEC+ had announced a production cut of 2 million barrels, and the recent reduction in oil output announced by Saudi Arabia is in addition to that.

Goldman Sachs has revised its prediction for oil prices upward in response to the production cuts. According to an analyst note, the investment bank is now forecasting that Brent crude oil could reach $95 per barrel by December 2023 and $100 per barrel by December 2024.

President Biden and the Democrats keep failing the American people. Inflation soared the second Biden stepped foot in office and things only appear to be getting worse.