The surprise slashing of oil production of more than a million barrels daily by OPEC+ sent already increasing oil prices surging even further this week. Look no further than the global benchmark Brent crude oil, which soared almost $5 a barrel on Monday alone.
It was that day when OPEC+ announced the production cut would begin in May and last through the end of the year.
To make matters worse, Russia said it was also slashing production by another half a million barrels of oil daily. This brought the total that will shortly leave the market to 1.6 million barrels per day.
Add to that the 2 million barrel-a-day production dip announced in October and implemented in November, and there is much momentum toward higher prices.
NEW: Oil prices surge after surprise production cuts by OPEC.
Are you ready for Inflation 2.0?https://t.co/eMRiuuuocS
— Collin Rugg (@CollinRugg) April 3, 2023
Even worse, AAA reports gas prices were already inching higher. The national average for a regular gallon of gas now sits at $3.50, up from $3.39 just a month ago.
As spring has begun and the summer driving season looms large, the implications for U.S. consumers are clear. The enemy that pummeled the Biden administration for much of its tenure — high oil prices — is set to return with a vengeance.
The Saudi-led production cuts, experts warn, may propel global oil prices back over $100 per barrel by summer. This can hardly be welcome news for the White House, which apparently is gearing up for a rigorous reelection battle in 2024.
And for all the self-inflicted wounds suffered by this Democratic White House, none hurt the administration more than rampant inflation. Even with the border crisis, surging violent crime, runaway spending, and the bungled Afghanistan withdrawal, the deepest cuts came from inflation.
Particularly from energy and even more specifically at the gas pump. The nation is just months removed from record-high gas prices that fueled massive unrest and anti-Biden sentiment.
The summer spike that many predict will not be favorable news for the current administration.
Still, few are likely to sympathize with a White House that went to war with domestic energy production on day one. Biden emphatically made it clear to all that he was no friend of the energy industry, and all of his windmills and solar panels will do nothing to ease the pain at the pump.