Sunita SomvanshiCrude Oil Prices
If you fill a car, run a delivery fleet, or hold energy shares, the latest drop raises one question. Will petrol and diesel get cheaper? Crude oil has pulled back from its highest level since April. Here is what drove the move, and what it may mean for pump prices.
Crude oil prices fell on Monday as traders took profits after steep rallies. The US benchmark, WTI, was at about $101.05 a barrel. The global benchmark, Brent, was at $109.45, after trading near $114.52 earlier in the session. Prices had climbed on Middle East tension in recent months. Benchmarks are the reference prices that refiners, traders and airlines use to price oil.
Pump prices depend on several costs beyond crude, so changes at the pump may lag behind crude moves. Do not expect quick cuts at the petrol pump.
Crude Oil Prices, Refining Margins and Shipping Costs
Crude is only part of the pump price. Refiners turn crude into diesel and jet fuel, so refining costs also shape pump prices.
Why did crude oil prices fall today? Commodity hedge funds took profits after the rally. Fears of supply disruption through Middle East shipping routes eased. Saudi airport operations were restored, and intercepted Houthi attacks eased tension.
Natural gas prices have also dropped, but for different reasons. See our natural gas price fall reasons report.
Crude has fallen from its highest level since April, with WTI near $101 and Brent near $109. Pump prices are likely to move slowly. Watch Brent’s direction over the coming weeks. For the bigger energy picture, read our global energy policy impacts report.
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