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Gas prices soar to nearly $4 nationwide after OPEC+ announces it will cut oil production

Gas prices are rising again in the United States after the world’s oil-producing countries announced last week that they would cut production.

Prices across the country had been falling for nearly 100 days after peaking due to the war in Ukraine and ongoing supply chain disruptions.

But after OPEC+ announced last week it would cut its production by 2 million barrels, gas prices in the United States rose again on Monday, reaching an average of $3.92.

In Michigan, where a fire destroyed a large petroleum plant, prices average $4.35

They’re even higher in California, where a gallon costs an average of $6.33 on Monday, as Governor Gavin Newsom claims companies are gouging prices. However, Valero has hit back, saying the high prices in the state are due to California’s regulations and taxes.

According to Patrick De Haan, chief analyst at GasBuddy, prices will now likely continue to rise as crude oil prices rise.

Gas prices rise again in the United States, averaging $3.92 on Monday

Gas prices rise again in the United States, averaging $3.92 on Monday

In a blog post on Monday, he wrote: “As OPEC+ has decided to cut oil production by 2 million barrels per day, we have seen the price of oil rise by 20 percent, which is the main factor in the national average that has risen for the third consecutive week. rises. .’

De Haan now expects prices to rise to $0.30 from their September low, pushing them up to $4 a gallon.

Andy Lipow, president of consulting firm Lipow Oil Associates LLC, also said he expects drivers across the US to pay $4 a gallon soon, according to NBC News.

In a letter to customers on Monday, he explained that gas reserves have plummeted in much of the United States as lower prices have boosted demand.

The low supply has now prompted the Biden administration to ban the export of refined products, although analysts say such a ban would hurt European allies facing sky-high prices caused by the war in Ukraine.

Biden would also consider ramping up production elsewhere, such as in communist Venezuela, with which the United States has had deteriorating relations.

President Joe Biden is now considering banning the export of refined products, although analysts say such a ban would hurt European allies facing skyrocketing prices caused by the war in Ukraine.  He is pictured in July with Saudi Crown Prince Mohammed bin Salman

President Joe Biden is now considering banning the export of refined products, although analysts say such a ban would hurt European allies facing skyrocketing prices caused by the war in Ukraine. He is pictured in July with Saudi Crown Prince Mohammed bin Salman

OPEC MEMBERS: NATIONS AGREEING TO CLOSURE PRODUCTION

Permanent Members of OPEC

Algeria

Angola

Congo

Ecuador

Equatorial Guinea

Iran

Iraq

Kuwait

Libya

Nigeria

Qatar

Saudi Arabia

United Arab Emirates

Venezuela

Non-OPEC Members Involved in Deal to Cut Production

Russia

Azerbaijan

Bahrain

Brunei

Equatorial Guinea

Kazakhstan

Malaysia

Mexico

Oman

Sudan

Southern Sudan

Brazil

Bolivia

The president was asked about OPEC+’s decision when he boarded Marine One ahead of a visit to hurricane-ravaged Florida after the announcement, but told reporters he “needs to see the details.”

He said he was “concerned” and reported that it was an “unnecessary” move.

A joint statement by White House National Security Adviser Jake Sullivan and National Economic Council Director Brian Deese said Biden was “disappointed at the short-sighted decision.”

“At a time when maintaining global energy supplies is paramount, this decision will have the most negative impact on low- and middle-income countries already recovering from high energy prices,” the statement said.

But John Kirby, the National Security Council’s strategic communications coordinator, downplayed the effect of the cut during a Fox News interview Wednesday morning.

‘[T]hey adjust their numbers a bit here. OPEC plus has said and told that they are producing 3.5 million barrels more than they actually are,” Kirby said.

“So in some ways this announced drop is actually bringing them back in line with actual production.”

He added that there were no “dramatic shifts in oil prices,” noting that Wednesday’s prices remain in the low ’90s.

Press Secretary Karine Jean-Pierre was also pressured on Tuesday over the White House’s previous rounds of victory over falling gas prices, which has translated into relative silence as they creep back up.

“You said the president was responsible for the drop in gas prices. Is the president responsible for rising gas prices?’ asked Fox News reporter Peter Doocy during Jean-Pierre’s regular press conference.

She replied, “So it’s much more nuanced than that.”

Jean-Pierre pointed out that gas prices have risen around the world and attributed the spikes to “the” [COVID-19] pandemic and Putin’s war’ in Ukraine.

“We understand there is more work to be done, we never said we’re done here,” the Biden official said.

“But we’ve seen, the reality is we’ve seen the fastest drop in gasoline prices in more than a decade. It’s because of what this president has done.”

CALIFORNI: California gas prices have soared in recent weeks, despite a drop in other states

CALIFORNI: California gas prices have soared in recent weeks, despite a drop in other states

CALIFORNI: Last week, gas prices were advertised at over $8 a gallon

CALIFORNI: Last week, gas prices were advertised at over $8 a gallon

However, prices in California had already reached exorbitant levels last month, even as prices plummeted in the rest of the country — and officials there now want to know why.

In a letter to oil executives on Sept. 30, David Hochschild, chairman of the California Energy Commission, demanded why gas prices have risen “despite a sharp drop in global crude oil prices, no significant unplanned outages of state refineries, and no increases in oil prices.” state taxes or fees. .’

MICHIGAN: On April 24, 2020 in Southgate, Michigan, a BP gas station is seen with a sign displaying gas for $0.99 a gallon as demand fell during the pandemic

MICHIGAN: On April 24, 2020 in Southgate, Michigan, a BP gas station is seen with a sign displaying gas for $0.99 a gallon as demand fell during the pandemic

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