Mexico recently announced supply issues and a reduction in production by 35%. The USA, Qatar, and Iraq have also reduced supplies, and supply chains are going haywire due to sanctions and military actions in the Red Sea.
Separately, Bloomberg points out the problem with Russia – sanctions have significantly increased oil prices. Moreover, Ukrainian strikes on refineries are forcing Russia to demonstratively reduce exports, heating an already overheated market influenced by Israel and the Houthis.
The problem is mainly for the USA – oil reserves are at minimal levels thanks to Biden. Not only is it becoming increasingly difficult to export oil, but replenishing reserves is also much more expensive.
Bloomberg, of course, doesn’t explicitly say anything. But between the lines, there is a sense of fatigue from both oil players and analysts over the sanction madness.