Get ready for $12 per gallon gas! That is what the chair of a major gas company said on Tuesday at an Energy Intelligence Forum in London. And, following that prediction, OPEC+ cut gas supply to the world by 2%.
OPEC nations met in Vienna on Wednesday and voted to cut global exports of gas from each member state in response to the price per barrel plummeting in recent weeks. This is due to decreased demand, which has been largely brought on by Western sanctions. Those sanctions will be a lot harder to carry out now that there is less gas in circulation and CNN reports that the Biden Administration is spitting nails. They are calling this move Russia’s fault and a signal that Eastern nations are supporting Russia.
The energy minister for Saudi Arabia told a Reuters reporter that he is tired of these moves being labeled as all-about-Russia. It is obviously far more nuanced than that but that has not stopped Western countries from taking it personally. The U.S. may reconsider its sanctions on Venezuela in order to open up more oil trade. Venezuela is an OPEC country.
The price of oil was already up on this news.