Foto: FinanceYahoo.com/FB
By Isaac Cohen*
It is remarkable how oil prices started falling as soon as the agreement on a temporary cease fire was signed, on June 14, by Iran and the United States. As a result of the conflict, oil prices crossed the barrier of more than $100 per barrel but following increased traffic out of the Strait of Hormuz, last week, the price fell to around $70 per barrel, a reduction of 36 percent close to $67 in February, the price before the conflict started.
The price of gasoline lags, falling in the United States to less than $4 per gallon, still $1 above the price that prevailed in February, before the conflict started. The White House immediately complained, blaming the big oil companies for “gouging,” because the price of gasoline has not gone down as much as crude prices. The American Petroleum Institute, representative of the oil companies said, “gasoline prices do not move in lockstep with crude oil, especially during a major global disruption that is still affecting supply, refining and inventories.” (The Wall Street Journal 06/25/26). President Trump said he had instructed the Justice Department to investigate.
Anyway, if the truce holds keeping open the Strait of Hormuz, while the ongoing negotiations fructify, the downward trend in oil prices will persist.
*International analyst and consultant, former Director ECLAC Washington. Commentator on economic and financial issues for CNN en Español, UNIVISION, TELEMUNDO and other media.
Edited by Ramón Jiménez/ML News
