Brace for oil prices to spike toward $100 a barrel with OPEC’s cuts set to squeeze supply in time for driving season, energy analyst says

Brace for oil prices to spike toward $100 a barrel with OPEC’s cuts set to squeeze supply in time for driving season, energy analyst says

OPEC+'s surprise decision to squeeze supply in time for the driving season could boost oil prices, according to an energy analyst.

The new normal for crude oil prices could climb to $100 a barrel, Paul Sankey told CNBC.

Sankey Research's president also warned the supply side of the oil market isn't looking great.

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The surprise move last weekend by the Organization of Petroleum Exporting Countries and its allies to slash oil output will squeeze supply in time for the summer driving season - which will likely boost oil prices toward $100 a barrel, an energy analyst said.

"The key thing here is Saudi wants higher prices, and they've basically said $95 is what they aspire to. They haven't specifically said that, but that's what we're kind of led to understand. So I think that would be the next target, definitely," analyst Paul Sankey told CNBC on Monday, referring to the cartel's de facto leader.

Brent crude prices, the European benchmark, has rallied more than 20% from a 15-month low reached in March, and traded near $85 per barrel at last check on