The latest production cuts pledged by Saudi Arabia might be felt by the U.S. in 6 to 8 months when Biden will be in the middle of his presidential campaign.
As of June 6, the U.S. retail gasoline average is $3.553 per gallon, according to AAA, $1.36 below the levels reported in this same period a year ago.that"there isn't much concern of an immediate and major rise in oil and gasoline prices" as a consequence of the latest cuts in production.
Gas prices are displayed at a Chevron station in Monterey Park, California, on July 19, 2022. The latest production cuts pledged by Saudi Arabia might be felt by the U.S. in 6 to 8 months when President Joe Biden will be in the middle of his re-election campaign.Denton Cinquegrana, the chief oil analyst at the agency Oil Price Information Service, agrees, saying that he doesn't think there is a big near-term impact on U.S. gasoline prices.
"I have been saying this for some time now but as the calendar stretches into the summer, I believe the chance of $4 per gallon is limited, outside of a big catalyst like a hurricane knocking out refineries in the U.S. Gulf Coast," he toldby Saudi Arabia feels like a 1-month trial balloon for July," Cinquegrana said."That is also a time of year where the Saudis use a lot of oil for domestic purposes and air conditioning. The initial market reaction was strong, but the market sputtered from there.in the U.S. will be limited at best from the Saudi cuts. While U.S. inventories are below seasonal norms, the market seems quite comfortable from a supply and demand standpoint.
"The risk increases down the road that when U.S. and global oil demand rise in line with a potential economic recovery, low oil inventories could escalate oil prices when that occurs," he added."It could be 6-12 months or longer."
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
Saudi Arabia oil supply cut could mean higher gas prices in U.S.The Saudi cut of 1 million barrels per day, to start in July, comes as the other OPEC+ producers agreed in a meeting in Vienna to extend earlier production cuts through next year.
Consulte Mais informação »
Saudi Arabia needs more than higher oil prices to fund its grand plans | CNN BusinessRiyadh knows that it cannot rely solely on a fluctuating oil market for income. Along with its efforts to raise oil prices, it is also trying to bring in investment from abroad.
Consulte Mais informação »
Iran to reopen embassy in Saudi Arabia, state media says, as enmity softensAfter a seven-year closure, Iran announced Monday that it would reopen its embassy in Saudi Arabia this week — a major step in moves to revive relations and soften a rivalry with major consequences for the region.
Consulte Mais informação »
Gas prices could spike after Saudi Arabia oil production cutAccording to AAA, drivers are currently paying an average of $3.55 for a gallon of regular gasoline. That is more than $1 lower than a year ago.
Consulte Mais informação »
Venezuela's Maduro visits Saudi Arabia -state mediaVenezuelan President Nicolas Maduro arrived in Saudi Arabia on Monday, state media reported, as the kingdom continues to expand its diplomatic outreach beyond traditional Western alliances.
Consulte Mais informação »
Oil Prices Rise After Saudi Arabia Cuts ProductionOil prices rose after Saudi Arabia said it would cut oil production by 1 million barrels per day. See potential bias and similarities in coverage from CNNBusiness, thehill and DailyCaller: SaudiArabia Oil
Consulte Mais informação »