Oil prices hit lowest since Middle East conflict
Brent crude fell below 75 USD barrel, lowest since late February on hopes Strait of Hormuz soon operates normally.
At June 24 close, Brent crude fell nearly 4% below 75 USD barrel. Lowest since US, Israel launched airstrikes against Iran late February.
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Meanwhile, US WTI crude fell 3.5% to about 71 USD barrel. Trend contrasts with month ago when oil topped 100 USD barrel.
Market fell as US, Iran start 60-day peace talks, hoping energy flows through Strait of Hormuz normalize. Investor supply disruption fears eased.
WTI oil price trend over past year. Chart: Trading Economics
Wednesday, US President Donald Trump said US consumers not fully benefit from deep crude price drop in recent weeks.
"Oil firms not cut retail fuel prices matching drop in crude they buy. Means people still pay high prices," Trump wrote on Truth Social. Added he asked US Department of Justice (DOJ) to urgently review issue.
However, Karen Young, senior research scholar at Center on Global Energy Policy, Columbia University, said US gas prices depend on crude, state, local taxes. Also, price adjustment from crude to refining to pump takes time.
"Usually takes weeks for crude drops to reflect in refinery prices, then reach consumers. So gas prices cannot fall instantly with crude," Young explained.