Oil prices have risen about $20 this year solely due to supply outages, with Russia’s war in Ukraine exacerbating the crunch, according to research by Bloomberg Economics. That’s a threat to US President Joe Biden, who heads to Saudi Arabia on July 15 with the goal of lowering fuel costs at home. His hosts may have limited capacity to address crude supply shortages. The alternative is to depress demand -- for that, Biden may need a recession.
Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.