Question

What is going on regarding oil global supplies and how might that impact inflation in the USA?

Answer 1

Oil global supplies are capped due to the agreement between the OPEC nations along with Russia amid rising US shale oil supplies. Recently, OPEC with Russia decided to raise oil output by 1 million barrels a day to stabilize crude oil prices which are rising sharply this year. There are concerns on oil supplies due to US sanctions on Iran which might result in decline in crude oil supplies which might be offset by higher supplies from US and OPEC but prices are likely to remain higher.

Crude oil directly impact the US gasoline prices and as the Summer season is underway which is usually related to higher gasoline demand in US as more people drive long , so higher gasoline prices will result in higher US inflation.

the above is answer..