Prepare for steadily rising gas costs, as stated in an interview by Patrick De Haan, the director of petroleum analysis at GasBuddy.
“What OPEC might do very much could dictate where we go by the end of the year.I had expected at least a good potential that the national average could fall under $3 a gallon, but I think OPEC just threw a bucket of cold water on that by signaling its intentions to be well ahead of any economic slowdown. Global inventories for oil remain extremely tight and it’s very clear that OPEC is growing addicted to triple digit oil.”
De Haan added that an unusually high number of refinery hiccups had been the main factor in pricing increases over the previous couple of weeks. However, given that OPEC currently seems poised to reduce oil supply, this could also start to push up prices a little bit.
Similarly, according to Tom Klaza, global head of energy analysis at the research firm Oil Price Information Service (OPIS), if they implement something very specific where Saudi Arabia, Kuwait, and the United Arab Emirates would bear the costs of the cuts because other nations are having difficulty meeting their quotas, then crude prices would rise sharply.
Additionally, he stated that although crude oil prices are expected to rise in the next three to four months, something similar will likely occur within the following three to four days. The lowest assumption is that they would announce a reduction of a million barrels per day, but it will affect all members, including those who perform below expectations.
Team Biden isn’t blameless either, even though OPEC is partially to blame for the rising oil costs that are quite likely to continue climbing. In reality, Team Biden’s emphasis on electric vehicles and actual or perceived attacks on fossil fuels are some of the causes driving up gas costs, according to De Haan.
Naturally, Team Biden has declined to accept accountability.
