Oil Extends Decline as Traders Weigh Trump’s Latest Iran Threats

Summary

Paul Sankey predicts US gasoline prices will surge to $6/gallon this summer due to supply disruptions from the Strait of Hormuz closure. He highlights physical shortages of base oil and gasoline, despite oil prices declining. He also sees potential for non-OPEC supply growth from Argentina and Brazil.

• Gasoline prices expected to reach $6/gallon national average by summer.
• Strait of Hormuz closure causing physical oil and base oil shortages.
• Refiners prioritizing jet fuel leading to less gasoline supply.
• SPR draws are significant, with 10 million barrel draw reported.
• Non-OPEC producers like Argentina and Brazil poised to increase output.
• The host discusses Caspian Sea and other geopolitical factors.