"Geopolitical Tensions Propel Oil Prices to New Highs"

Global supply shocks, including Mexico's crude export cuts, US sanctions on Russian and Venezuelan oil, and Houthi rebel attacks on tankers, are intensifying fears of commodity-driven inflation and pushing oil prices towards $100 a barrel. The disruptions, combined with healthy global demand, are turbocharging an oil rally ahead of the US summer driving season, complicating central banks' rate-cut deliberations and clouding US President Joe Biden’s reelection chances. The surge in oil prices is also snarling the Biden administration’s plans to refill emergency US oil reserves and threatening to push retail gasoline prices higher, contributing to concerns about a reversal in the recent slowdown in consumer price gains.