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Understand The Drop Of More Than 7% In Crude Oil Prices And The Impact On Gas Prices!
On this Monday (23), the oil market experienced another day of tension and surprise. After a geopolitical turnaround in the Middle East, the price of oil plummeted more than 7%, leaving investors and consumers on alert. But the big question that remains is: “What about gas? Will it drop too?”
Tension Between Iran And The USA Drops Oil Prices
The reason behind this significant drop has a name: Iran’s retaliation against the United States. In response to the American attack that occurred on Saturday (21), Iran launched missiles at the Al Udeid airbase in Qatar. The offensive, dubbed “Announcement of Victory”, generated initial panic and speculation about the possible closure of the strategic Strait of Hormuz, through which about 30% of the world’s oil production passes.
By around 4 PM (Brasilia time), Brent fell 6.67% to US$ 70.52 a barrel, while WTI dropped 7.41%, trading at US$ 68.37. A sharp decline that few predicted at the start of the day.
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Ceasefire And A Snowball Effect On Brazilian Oil Refineries
Despite the military escalation, the announcement of a possible ceasefire by the USA brought immediate relief to the markets. As a result, the gap between international prices and the prices practiced by Petrobras has significantly decreased.
According to Abicom (Brazilian Association of Fuel Importers), the price difference for diesel at Brazilian refineries fell from 19% to 12% in relation to the Gulf of Mexico. Gasoline is now only 3% below international prices, which reduces the pressure for adjustments.
And What About The Brazilian Consumer? Cheaper Gasoline?
For now, consumers feel little to no change at the pump. However, according to experts, if the downward trend in oil prices continues, fuel prices may drop in the coming weeks, as indicated by the president of Petrobras.
The international drop may be a relief for Brazilian wallets, but everything will depend on geopolitical developments and the pricing strategy of the state-owned company. And you, what do you think will happen to fuel prices?
