close video GasBuddy analyst reports some states seeing 20 to 30-cent bumps at the pump
GasBuddy head of petroleum analysis Patrick De Haan warns retail gas prices will ‘accelerate’ in a few days due to OPEC’s surprise cuts.
After OPEC members announced surprise production cuts in its oil outputs just before the busy summer travel season, one GasBuddy analyst warned American drivers could see a gas price spike within "the next few days."
"I think it's just within a matter of the next few days, we'll start to see those retail gas prices accelerating as a result of those OPEC production cuts," GasBuddy head of petroleum analysis Patrick De Haan said on "Varney & Co." Tuesday.
OPEC’s decision to pump 1.15 million fewer barrels of oil each day, according to the expert, may force state gas price averages to increase anywhere from 5 to 15 cents.
"The week-on-week increase is only about a nickel, but we are starting to see some signs that states are going to go up big," De Haan clarified. "In fact, some big jumps today in the state of Ohio where prices seemingly jumping 20 to 30 cents, that's going to spread throughout the Midwest and then into Florida. Those states tend to be bellwethers that move first."
GAS PRICES COULD HIT $4 A GALLON AFTER OPEC PRODUCTION CUT
As of Tuesday, the price of regular gasoline averaged $3.50, according to AAA. This means if De Haan’s prediction is correct, gas prices could breach $4 in just a few weeks.
GasBuddy head of petroleum analysis Patrick De Haan warned of “big jumps” in gas prices within “the next few days” on “Varney & Co.” Tuesday. (iStock)
States in the Midwest and some parts of Florida have already shown signs of "price cycling," the analyst pointed out.
"They're the first to move, and they generally see really big corrections. So Ohio is starting to see some of those stations go up 20 to 30 cents, and I would say within the next 24 hours, we'll likely see the same happening in Indiana and Michigan, where stations could also get closer to $4, maybe $3.85 or $3.95 in those states," DeHaan said.
"That's a 20 to 30-cent bump," he emphasized, "and that's what the rest of the nation may start to see as well with the national average potentially rising 10 to 15 cents over the next week or two."
For those who use heavy machinery and require diesel, De Haan indicated that those retail prices "continue to moderate." close video OPEC’s oil cut surprise a ‘slap in the face’ to Biden: Phil Flynn
Payne Capital Management President Ryan Payne, Geltrude & Company founder Dan Geltrude, and The Price Futures Group senior market analyst Phil Flynn react to OPEC announcing oil output cuts on ‘The Claman Countdown.’
"We should see the average price for diesel continuing to inch down. Of course, that remains a wild card if OPEC further cuts oil production or if there are any refinery hiccups, that could change," De Haan said. "But diesel prices [are] continuing to moderate."
But less than 60 days away is hurricane season – one factor that Lipow Oil Associates President Andy Lipow says further complicates gas prices.
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Sen. Markwayne Mullin, R-Okla., addresses how OPEC+ plans to cut oil production by 1 million barrels a day on The Bottom Line.
"A major storm making landfall along the Gulf Coast, where 15% of the nation’s oil production and over 45% of the nation’s refinery capacity is located, can result in a significant supply disruption sending prices even higher," Lipow previously told FOX Business.
Oil production rose to nearly 12.5 million barrels per day in January, which is the highest level since March 2020, according to data from the Energy Information Administration.
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FOX Business’ Daniella Genovese contributed to this report.
The government has said the £3 cap would stay in place for another year, until December 2025.
But speaking on Sunday morning with Trevor Phillips, Transport Secretary Louise Haugh indicated the government was considering abolishing the cap beyond that point to explore alternative methods of funding.
She said: “We’ve stepped in with funding to protect it at £3 until 31 December next year. And in that period, we’ll look to establish more targeted approaches.
“We’ve, through evaluation of the £2 cap, found that the best approach is to target it at young people.
“So we want to look at ways in order to ensure more targeted ways, just like we do with the concessionary fare for older people, we think we can develop more targeted ways that will better encourage people onto buses.”
Pressed again on whether that meant the single £3 cap would be removed after December 2025, and that other bus reliefs could be put in place, she replied: “That’s what we’re considering at the moment as we go through this year, as we have that time whilst the £3 cap is in place – because the evaluation that we had showed, it hadn’t represented good value for money, the previous cap.”
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It comes after Ms Haigh also confirmed that HS2 would not run to Crewe.
There had been reports that Labour could instead build an “HS2-light” railway between Birmingham and Crewe.
But Ms Haigh said that while HS2 would be built from Birmingham to Euston, the government was “not resurrecting the plans for HS2”.
“HS2 Limited isn’t getting any further work beyond what’s been commissioned to Euston,” she added.
Last month the prime minster confirmed the £2 bus fare cap would rise to £3 – branded the “bus tax” by critics – saying that the previous government had not planned for the funding to continue past the end of 2024.
He said that although the cap would increase to £3, it would stay at that price until the end of 2025 “because I know how important it is”.
Manchester mayor to keep £2 cap
The cap rise has been unpopular with some in Labour, with Greater Manchester mayor Andy Burnham opting to keep the £2 cap in place for the whole of 2025, despite the maximum that can be charged across England rising to £3.
The region’s mayor said he was able to cap single fares at £2 because of steps he took to regulate the system and bring buses back into public ownership from last year.
He also confirmed plans to introduce a contactless payment system, with a daily and weekly cap on prices, as Greater Manchester moves towards a London-style system for public transport pricing.
Under devolution, local authorities and metro mayors can fund their own schemes to keep fares down, as has been the case in Greater Manchester, London and West Yorkshire.
Shelves will not be left empty this winter if farmers go on strike over tax changes, a cabinet minister has said.
Louise Haigh, the transport secretary, said the government would be setting out contingency plans to ensure food security is not compromised if farmers decide to protest.
Farmers across England and Wales have expressed anger that farms will no longer get 100% relief on inheritance tax, as laid out in Rachel Reeves’s budget last month.
Welsh campaign group Enough is Enough has called for a national strike among British farmers to stop producing food until the decision to impose inheritance tax on farms is reversed, while others also contemplate industrial action.
Asked by Trevor Phillips if she was concerned at the prospect that shelves could be empty of food this winter, Ms Haigh replied: “No, we think we put forward food security really as a priority, and we’ll work with farmers and the supply chain in order to ensure that.
“The Department for Environment, Food and Rural Affairs will be setting out plans for the winter and setting out – as business as usual – contingency plans and ensuring that food security is treated as the priority it deserves to be.”
From April 2026, farms worth more than £1m will face an inheritance tax rate of 20%, rather than the standard 40% applied to other land and property.
However, farmers – who previously did not have to pay any inheritance tax – argue the change will mean higher food prices, lower food production and having to sell off land to pay.
Tom Bradshaw, the president of the National Farmers Union, said he had “never seen the united sense of anger that there is in this industry today”.
“I don’t for one moment condone that anyone will stop supplying the supermarkets,” he said.
“We saw during the COVID crisis that those unable to get their food were often either the very most vulnerable, or those that have been working long hours in hospitals and nurses – that is something we do not want to see again.”
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7:06
Farmers ‘betrayed’ over tax change
Explaining why the tax changes were so unpopular, he said food production margins were “so low”, and “any liquid cash that’s been available has been reinvested in farm businesses” for the future.
“One of the immediate changes is that farms are going to have to start putting money into their pensions, which many haven’t previously done,” he said.
“They’re going to have to have life insurance policies in case of a sudden death. And unfortunately, that was cash that would previously have been invested in producing the country’s food for the future.”
Sir Keir has staunchly defended the measure, saying it will not affect small farms and is aimed at targeting wealthy landowners who buy up farmland to avoid paying inheritance tax.
However, the Conservatives have argued the changes amount to a “war on farmers” and have begun a campaign targeting the prime minister as a “farmer harmer”.
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1:19
‘Farmers’ livelihoods are threatened’
Speaking to Sunday Morning With Trevor Phillips, shadow home secretary Chris Philp said he was happy with farmers protesting against the budget – as long as their methods and tactics were “lawful”.
“What the Labour government has done to farmers is absolutely shocking,” he said.
“These are farmers that, you know, they’re not well off particularly, they’re often actually struggling to make ends meet because farming is not very profitable these days. And of course, we rely on farmers for our food security.
Addressing the possible protests, Mr Philp said: “I think people have a right to protest, and obviously we respect the right to protest within the law, and it’s up to parliament to set where the law sits.
“So I think providing they’re behaving lawfully, legally, then they do have a right to protest.”
Moscow is focused on the “energy infrastructure throughout Ukraine” and is trying to intimidate Ukrainians with “cold and lack of light”, Mr Zelenskyy said.
The president added: “The whole world sees and knows that we are defending ourselves against absolute evil, which does not understand any language but force.
“We need unity [and] the world needs unity. Only together can we stop this evil.”
Two people were killed and a 17-year-old boy was injured after a Russian attack in the Black Sea port of Odesa, regional governor Oleh Kiper said.
Energy infrastructure was damaged, he said, leading to “interruptions in the supply of heat, water and electricity”.
In Mykolaiv, southern Ukraine, officials said two people were killed in a Russian drone attack.
Ukraine’s state emergency service said a multi-storey building, cars and a shopping centre were hit.
Two women were killed and six injured, including two children, it added.
In the central Dnipro region, two people died and three were wounded in a strike on a rail depot, while in Lviv, on the border with Poland, a woman was killed in a car.
In the capital, Kyiv, mayor Vitali Klitschko said Russian attacks had caused a fire to erupt on the roof of a residential building, injuring at least two people.
People took refuge in metro stations, while emergency services were pictured removing part of a Russian missile from an apartment block.
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The Ukrainian military said it had destroyed 102 missiles and 42 drones launched by Russia.
Hypersonic missiles were among the 120 fired at Ukrainian territory, it said.
Air defences were active in “almost all” regions of Ukraine.
Equipment at thermal power stations has been “seriously damaged” during Russian air strikes, Ukraine’s largest private energy provider said. DTEK said its staff were working on repairs.
Russia’s defence ministry confirmed it had attacked energy resources supporting Ukraine’s military-industrial complex, Russian news agencies reported.
Poland scrambled its air force early on Sunday because of the “massive attack by the Russian Federation using cruise missiles, ballistic missiles and unmanned aerial vehicles”.
Mr Zelenskyy sent his condolences to anyone affected by the latest Russian attacks.
He said “all necessary forces” were involved in restoring power and facilities.
On Tuesday, it will be 1,000 days since Russia launched what it calls its “special military operation”.