OPEC+ Oil Producers Announce Production Cut

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OPEC+ oil producers have announced that from May until the end of the year, production will be cut by a total of 1.15 million barrels per day which is expected to cause a jump in gas prices worldwide.  U.S. prices could increase up to 26 cents per gallon, in addition to the seasonal increase of an estimated 32 cents. According to AAA, the average price per gallon in the U.S. is currently $3.50 per gallon and may shortly be above $4.00. Despite the cut being only 1% of total world oil production, managing director of Clearview Energy Partners LLC Kevin Book said, “You are in a market that is relatively balanced. You take a small amount away, depending on what demand does, you could have a very significant price response.”