Is Our Price of Gas About to Go Back Up? Not Again!
Our friends, which is a huge overstatement, OPEC, (Organization of the Petroleum Exporting Countries) have just announced they are planning to slash oil production by more than 1.6 million barrels a day, starting in May and running through the end of the year.
What great news! NOT!!
The question here is how far will the cut drive up oil prices, meaning of course, gas? And, how much of an impact will it have in Michigan?
Quite honestly, we're probably going to have some "pain at the pump" again this summer just like last year. Good grief, last year our prices soared to almost $5 a gallon.
Fox17 reported that OPEC says they are worried that the banking crisis, and the macroeconomic crisis inflationary risks could dramatically reduce the demand for oil later this year. Seriously?
We in the U.S. have our high demand for gas in the summer, but it peaks during winter for the rest of the world. So, will prices jump right away?
The experts expect prices to begin their climb in May after OPEC begins their cut.
And this production cut/pump price rise will have a more profound effect than just the cost of a gallon of gas. Oakland University assistant professor Zeina AlSalman says if we're spending more at the pump, we're spending less on other things and prices on other consumer goods could go up as well.
Does anyone benefit from this? Nope! Just OPEC, of course.
However, don't forget that since 2008, we in the U.S. have increased our own oil production, which basically means the economy may not be impacted as badly as predicted, but in the meantime, the best thing we all can do, is to start budgeting.