Brent crude sees steepest weekly drop since COVID; US gas nears $4 per gallon

Photo by Jan Zakelj Brent crude prices have experienced a significant decline, extending their steepest weekly drop since the COVID-19 pandemic began. The price of Brent crude fell 1.7% to $96.67 per barrel, continuing a 16% weekly decline. Meanwhile, U.S. gasoline prices are nearing a potential drop below $4 per gallon, currently averaging around $4.01. These developments come amid reduced geopolitical tensions, as diplomatic efforts involving Iran have eased concerns over supply disruptions, although threats near the Strait of Hormuz remain. Market participants appear to interpret these developments as reducing the likelihood of crude oil reaching a new all-time high by December 31. Current market data shows a decline in the probability of this outcome, with the December 31 sub-market priced at 5.5% YES, down from 8% just 24 hours ago and 16% a week ago. This trend suggests a growing sentiment that the recent selloff and easing of geopolitical tensions are likely to keep oil prices from surging in the near term. The outlook for crude oil prices remains influenced by various geopolitical and economic factors, including OPEC’s production decisions and broader global demand trends. ...