Global Oil Supply Squeeze Raises Summer Gas Price Fears

Global oil supply disruptions from countries like Mexico, Iraq, UAE, and Russia are squeezing the market ahead of summer driving season. This could push oil prices to $100 per barrel.

The supply issues are compounding existing inflation concerns and complicating rate cut deliberations for central banks.

Multiple factors have contributed to the supply crunch, including OPEC+ production cuts, sanctions on Russian oil, attacks on tankers, and outages.

The shortage of heavier, sour crude oils is especially acute, leading to a spike in prices for those oil types.

Rising gas prices threaten Biden's plans to refill emergency oil reserves and are a political risk as high energy costs persist. $4 per gallon gas could be on the horizon.