The price of oil is now lower than it was before the start of the US-Israel war in Iran, falling to $72.24 per barrel, following forecasts of an oversupply.
Oil prices have been falling since the United States and Iran finally began peace talks, as hopes grow for a long-lasting agreement that will bring the war to an end.
At the same time, shipping traffic through the Strait of Hormuz has gradually started to increase, and yesterday it doubled, reaching its highest level since late February and Iran’s closure of the strait.
An oversupply of oil pushes prices down because supply exceeds demand, unlike during the war, when supply was more limited.
Meanwhile, US President Donald Trump said he had ordered an investigation into major energy companies, accusing them of “profiteering” at the expense of drivers because they have not reduced fuel prices following the decline in wholesale oil prices on international markets.
“Oil prices have fallen so much, and we are not seeing a corresponding change at the pump, as we should,” Trump told reporters in the Oval Office. “In my opinion, we should be at $2.25 [£1.71] a gallon at the pump right now, but we are higher than that.”
The American Petroleum Institute (API), which represents the US oil and natural gas industry, said that fuel prices “do not move in parallel with crude oil prices.”
