No one able to stop OPEC cutting production, which means even higher fuel prices

By Dana Malcolm

Staff Writer

#TurksandCaicos, October 6, 2022 – Oil production will be cut by two million barrels per day beginning next month, a blow to consumers who have been struggling with heightened gas prices all year.  The Organization of Petroleum Exporting Countries (OPEC) agreed to cut oil production in a meeting on Wednesday despite efforts by U.S. President Joe Biden to sway them.

The price of oil per barrel had soared to incredible highs in early 2022 following sanctions on Russia over its invasion of Ukraine and western countries subsequently shunning the oil and gas provided by the Eurasian nation. That pushed up oil prices in the US and as a result the Turks and Caicos and wider Caribbean to incredible highs this summer, a double whammy of rising grocery  and fuel costs that stressed pockets.

Prices dropped at the end of summer to less than 90 dollars a barrel after spending months above the $110 dollar mark and marked highs of up to $130 dollars.

Gas Prices in the Turks and Caicos spiked by more than $1.68 reaching highs of $8.10 during the period.  In June some power bills doubled and in rare cases tripled, according to residents, prompting calls for the government to investigate and birthing forgiveness programs for the swaths of families unable to pay the bills in full.  The Government had promised to rethink the Food and Fuel Tax Bill which saw a percentage of taxes on food and gas dropped, in an effort to lower prices back in April, if the need arose.

Reuters’ analysts had predicted as much as one million barrels per day would be cut.  Instead the slash was double that. Patrick De Haan, a petroleum and Energy Analysis Expert weighed in on the possible impact.

“As a result of OPEC’s production cut, I estimate U.S. gas prices will be impacted by roughly 15-30c/gal.”

This impact will of course be multiplied for and absorbed by residents of the Turks and Caicos and the TCI has still not quite recovered from the ultra-high prices earlier this year based on the government’s monthly gas price index which shows prices are going down much slower than they wet-up.

In addition $2.5 million was just allocated to put a cap on fuel prices for domestic customers who complained bitterly about the high prices.

That oil prices per barrel will hit the $100 dollar mark is a now distinct possibility.