Traders have been taken by surprise by a surge in oil prices, which threaten to push Brent crude, the global oil benchmark, to $100 a barrel for the first time in almost two years.
Mere days ago, oil jumped above $90 a barrel – triggered by military tensions between Israel and Iran. Other factors are also at play, including:
1) Mexico has slashed its crude exports by 35% to try and wean the country off costly fuel imports, compounding a global squeeze and prompting the United States to consume more domestic oil.
2) U.S. sanctions are stranding Russian oil cargoes at sea, with supplies from Venezuela a potential next target.
3) Yemeni Houthi rebel attacks on tankers in the Red Sea are delaying crude oil shipments through the Suez Canal.
4) OPEC and its allies continue to cut production.
