Oil Prices Surge To 18-Month High Amid Global Supply Fears
Oil Prices Surge To 18-Month High Amid Global Supply Fears...
Oil prices jumped to their highest level since October 2024 on Tuesday, with Brent crude surpassing $95 per barrel as geopolitical tensions and production cuts squeeze global supplies. The spike is fueling concerns about rising gas prices ahead of the summer driving season, putting fresh pressure on US consumers already grappling with inflation.
The benchmark West Texas Intermediate (WTI) crude rose 3.2% to $91.78 per barrel in early trading, while international Brent crude climbed to $95.43. Analysts attribute the surge to escalating Middle East conflicts, new OPEC+ production restraints, and unexpected refinery outages in Russia. Energy Secretary Jennifer Granholm warned Congress last week that $4-per-gallon gasoline could return by Memorial Day.
Drivers are feeling the pinch as the national average gas price hit $3.68 per gallon Monday, up 28 cents from a month ago according to AAA. The White House confirmed it's considering tapping the Strategic Petroleum Reserve again, though officials stress any release would be "targeted and limited." Energy analysts at Goldman Sachs now predict Brent could reach $100 by June if supply disruptions persist.
This marks the fourth consecutive week of rising oil prices, with markets particularly sensitive to last weekend's drone attacks on Russian oil terminals and Saudi Arabia's decision to extend its voluntary 1 million barrel-per-day production cut. The trend is dominating financial news as investors weigh the potential for renewed inflation that could delay Federal Reserve interest rate cuts.
Small business owners expressed frustration at the sudden cost increases. "My delivery trucks are burning through profits," said Ohio-based florist Maria Gutierrez, who estimates fuel costs have added $1,200 to her monthly expenses. The price surge comes as US crude inventories fell by 2.3 million barrels last week, according to Wednesday's Energy Information Administration report.
Energy experts note that while US shale production remains strong, global spare capacity is dwindling. "We're one major disruption away from triple-digit oil," warned RBC Capital's Helima Croft. With summer travel demand looming and refinery maintenance season underway, analysts say relief at the pump appears unlikely before autumn.
