Conflict of oil-producing countries may cause US gasoline prices to rise to $ 4 per gallon

Fierce struggles within the Organization of the Petroleum Exporting Countries (OPEC) and ongoing tensions with allied oil-producing countries could lead to larger increases in fuel prices. Writes about it Fox Business.

Photo: Shutterstock

"A power struggle between leading members Saudi Arabia and the United Arab Emirates over production levels could push gasoline prices to $3,50 or $4 a gallon," said PRICE Futures Group senior analyst Phil Flynn.

“If OPEC fails to reach a compromise, it could mean oil prices will rise sharply,” Flynn warned.

Meanwhile, gasoline prices in Los Angeles, California are already "just one penny" from a nine-year record of approximately $ 4,33 per gallonPatrick de Hann, head of petroleum analysis at GasBuddy, wrote on Twitter on Tuesday.

Prices largely depend on whether Saudi Arabia and the UAE can reach an agreement - although it is unclear when, if at all, negotiations will resume.

On the subject: In the summer in the USA there may be problems with gasoline: how to prepare for it

On July 4, the UAE opposed the OPEC + group, which includes non-OPEC manufacturers such as Russia. The UAE said it supports the proposed gradual increase in production favored by Saudi Arabia, the group's largest producer, and non-member Russia. But the UAE has said it also wants to increase the permitted production level.

Since no new date has been set for the resumption of negotiations, oil markets remain in a state of at least temporary uncertainty about the future. In addition, fuel demand continues to grow gradually as the COVID-19 pandemic emerges.

However, Flynn said the fight could have the opposite effect on gasoline prices.

“It could go the other way, where OPEC+ countries break down and enter into a production war and try to flood the market with oil and drive prices down again,” Flynn said.

You may be interested in: top New York news, stories of our immigrants and helpful tips about life in the Big Apple - read it all on ForumDaily New York.

As the economy began to recover from the COVID-19 pandemic and vaccine distribution gained momentum, the OPEC + group cut production.

The OPEC + alliance is currently producing about 37 million barrels per day, up from about 43 million barrels per day in April last year, at the start of the pandemic.

OPEC + meets monthly to decide on the addition of additional production volumes. However, two days of negotiations last week did not lead to an agreement. Negotiations were supposed to resume on Monday 5 July, but a few hours before the meeting it was announced that the meeting had been canceled.

Read also on ForumDaily:

Four inexpensive things I love in the USA

Taxes and Student Loans: Which Laws Came into Effect in California on July 1

Rapid inflation: US price increases beat 2008 record

Our response to Tesla: electric cars and supercars produced in Russia and Ukraine

Do you want more important and interesting news about life in the USA and immigration to America? — support us donate! Also subscribe to our page Facebook. Select the “Priority in display” option and read us first. Also, don't forget to subscribe to our РєР ° РЅР ° Р »РІ Telegram  and Instagram- there is a lot of interesting things there. And join thousands of readers ForumDaily New York — there you will find a lot of interesting and positive information about life in the metropolis.