- OPEC+ will increase oil output by 411,000 barrels per day starting June 1, which is likely to affect gas prices, ahead of President Trump’s visit to Saudi Arabia.
- U.S. gas prices have dropped nearly 20% over the past three months, with predictions they could fall below $3.00 per gallon soon.
- Gas prices vary significantly across states, with California’s average at $4.779 and Mississippi’s at $2.650 per gallon.
Oil Prices Drop Ahead of Trump’s Visit to Saudi Arabia
Oil prices have fallen sharply. OPEC+ made a decision to increase oil production just before President Trump’s visit to Saudi Arabia. This move pushed U.S. benchmark crude prices to a four-year low. The price dropped by as much as 4% overnight. However, prices started to recover slightly by Monday morning. The decision to boost oil output was seen as an effort to support the market and ensure stability. This shift comes at a time when the world is watching how President Trump’s policies impact global economics.
OPEC+ Plans to Boost Output
OPEC+, which consists of eight major oil-producing countries, announced it will increase its output by 411,000 barrels per day starting on June 1. This decision follows the group’s assessment of strong market conditions. The group believes that raising output will help balance the supply and demand for oil. However, analysts suggest that OPEC+ may also be responding to President Trump’s pressure. The timing of this move is seen as a way to show support for Trump before his visit to the Middle East.
Gas Prices Have Dropped Significantly
In the U.S., gas prices have already fallen nearly 20% in the past three months. This drop follows the trend in oil prices. Traders are closely watching how Trump’s trade policies might affect the global economy. Lower gas prices have been a consistent talking point for Trump, especially as he pushes for cheaper energy. According to Stephen Innes of SPI Asset Management, Washington wants low energy prices. He also noted that Gulf producers still rely on U.S. security guarantees. In this context, the White House has significant influence over the decisions made by OPEC+.
Average Gas Prices in the U.S.
Currently, the average gas price in the U.S. is \$3.165 per gallon. This is a significant decrease compared to last year when the average was \$3.652. Experts predict that gas prices could continue to drop in the coming weeks. Many believe that prices could fall below \$3.00 per gallon after Trump’s visit to Saudi Arabia. This prediction comes as the global oil market adjusts to the decision by OPEC+ to raise production. If these trends continue, consumers can expect to see more savings at the pump soon.
Gas Prices Vary by State
Despite the overall drop in prices, gas costs vary widely from state to state. In California, the average price for a gallon of regular gas is significantly higher at \$4.779. On the other hand, in Mississippi, the average price is much lower, at \$2.650. Texas residents are paying $2.742 on average for a gallon of regular gas. These differences are due to factors such as local taxes, supply issues, and regional demand. While some states will continue to see higher prices, others may benefit from the recent drop in oil costs.
What This Means for Consumers
The recent dip in oil prices and the expected drop in gas prices will likely have a positive impact on U.S. consumers. Lower gas prices mean more money in people’s pockets, which could boost consumer spending. For drivers, this means cheaper fuel costs as they head into the summer months. However, the variation in gas prices between states shows that not everyone will benefit equally from the drop. Still, with prices trending downward, consumers can look forward to lower costs at the pump in the near future.
