Crude Oil Price Drops by 7% as US Halt Strikes

[Localhostspeed]

Here in the Philippines, we can really feel it whenever fuel prices increase. It does not affect only people who own cars because transportation costs also increase, and later we notice higher prices for food and other basic needs.

I hope the current ceasefire will continue and lead to real peace. But based on what I have observed, fuel prices rise quickly whenever there is conflict, while price reductions at the pump usually take more time. So even if crude oil becomes cheaper, I am not expecting a big rollback immediately.

Before Iran and US started this recent fight, we were already complaining to the government to the government that refinary here should reduce their price since price of crude oil has reduced, after the delegation meetings, they reduced the price and then Iran and US started another one. On visiting the fueling station, I was surprised that the selling price now is higher than the one that was sold the first time, I'm tired of everything right now.

This war is not even affecting these countries, US is far from middle east, it is only their armies that are doing the job while Iran is rich in oil, but suffer casualties more. May be this is not time to be pointing fingers and looking to feel big. Let's fix Iran and let US comes in good terms so the rest of the world will have peace. There many businesses that can't continue because of this increased in crude oil.

[PostQuantumBTC]

It is unfortunate that those in the business of oil and gas will never stop to extort the people, I will always mention my country when issues like this, is been discussed, when the war between IRAN and US intensified then, the price of fuel skyrocketed immediately in my country as if the marketers were waiting for such to happen, that was what also happened when our president removed subsidy in petroleum  products I can never forget, the price of fuel then doubled overnight before the next day, that is what has been going on, we know that most of them has enough of this product before the strike break, but they can never drop the price, but don't we think that these guys are just after their business hence they know that the government does not care especially in my country, the fix the price they want to sell by themselves even though the government gives them order to sell at a reduced price they might agree but the meter can never be okay,  as for the adoption of Bitcoin, it has geared up already.

With the way you post, I think you are also from Nigeria where the president removed the fuel subsidy like an illiterate. Also the price of fuel increased immediately when the war started on the 28th of February in Iran. But what is happening now is different, people are suffering from inflation in all or almost all countries including the United States itself with the unnecessary and selfish war that Trump is fighting in Iran.

Houthi has joined the war now, over 75% of Saudi Arabian oil are passing through strait of Bab El-Mandeb in the red sea. After Iran has the power to also block the striat to some extent in the red sea with the help of Houthi, if the war continue, it is very possible that oil price is going to $150.

They will still threaten to cut underwater cable if the war continue. Trump know all these can happen but he just wanted war. There is nothing that man has done that I like including his tariffs and his stance on Greenland and Cuba.

[Coyster]

This war is not even affecting these countries, US is far from middle east, it is only their armies that are doing the job while Iran is rich in oil, but suffer casualties more. May be this is not time to be pointing fingers and looking to feel big. Let's fix Iran and let US comes in good terms so the rest of the world will have peace. There many businesses that can't continue because of this increased in crude oil.

You couldn't be more wrong, you should look up how much more Americans are spending on gasoline, and i'd give you a hint, it is significantly higher than pre-war levels. The U.S. have also spent around $37b to fund this war thus far and they have requested further funding, running into tens of billions of dollars to continue operations in the Middle East.

What about Iran, the damages and losses are massive, the war has done terrible damage to their economy, as inflation levels worsen. You should look up these numbers for yourself to get a very clear picture of the situation. And also understand why you couldn't be more wrong to believe the war isn't affecting the nations actively in it.

[bhadz]

Here in the Philippines, we can really feel it whenever fuel prices increase. It does not affect only people who own cars because transportation costs also increase, and later we notice higher prices for food and other basic needs.

Today, despite that there's a ceasefire again. We've got another increase of 7 pesos ($0.11) per liter. These oil companies are driven by profit when it should have been below 70 pesos already($1.13) per liter because pre-war price was around Php50 to 55 for diesel. The reaction of this strike halt will be for next week but let's see if the oil companies will drop in prices along with the news. They're following the Mean of Platts Singapore (MOPS) for the pricing. And basically, when oil increases then the whole thing in the economy increases too because of its impact which is another round for inflation.

Before Iran and US started this recent fight, we were already complaining to the government to the government that refinary here should reduce their price since price of crude oil has reduced, after the delegation meetings, they reduced the price and then Iran and US started another one. On visiting the fueling station, I was surprised that the selling price now is higher than the one that was sold the first time, I'm tired of everything right now.

Thanks to the oil deregulation law.  
The government has no control of the price from these oil companies. And instead of creating solutions, they're passing it to the private sector and these oil companies are in control of it, margin + reasons that the supply is limited etc. In the meanwhile, what's being told to the press is that we've got enough supply of oil.

[STT]

The oil is heavy and takes time to transport, not even including the refinement and final delivery to customer.  The graph shows an immediate market price, basically estimating future price movements.
   In practise the two considerations are different things, not many of us are using raw crude even if it was sweet light its still a long way from products we are relying on but there is a relation between the two and much time taken in the production line from the gulf source.  
  
  The one easy thing we can conclude from all this trouble in a wasteful war is independence from oil helps make a country alot more resilient from this global trade vulnerability.
  

[Die_empty]

Today, despite that there's a ceasefire again. We've got another increase of 7 pesos ($0.11) per liter. These oil companies are driven by profit when it should have been below 70 pesos already($1.13) per liter because pre-war price was around Php50 to 55 for diesel. The reaction of this strike halt will be for next week but let's see if the oil companies will drop in prices along with the news. They're following the Mean of Platts Singapore (MOPS) for the pricing. And basically, when oil increases then the whole thing in the economy increases too because of its impact which is another round for inflation.

They are slow to reduce prices when there is a ceasefire. But quick to increase the price of petrol immediately when hostility starts. I bet many of these oil firms will want this war in the Middle East to continue because the market instability makes it easy to make more gains. So many people have switched to public transport because they cannot afford to fuel their cars.

Thanks to the oil deregulation law.  
The government has no control of the price from these oil companies. And instead of creating solutions, they're passing it to the private sector and these oil companies are in control of it, margin + reasons that the supply is limited etc. In the meanwhile, what's being told to the press is that we've got enough supply of oil.

The government of my country just ended fuel subsidies two years ago. Deregulation is contributing to a high rate of inflation. The cost of goods and services is increasing because the oil market is now controlled by the law of demand and supply. I went to the hospital yesterday, and there was no water because o fuel to power generators. This war needs to end permanently.   

[pooya87]

Even though the real oil price is much higher (being traded in real world not on some website on the internet) but it is still fascinating to see how the US regime has such a tight control over that market and can significantly manipulate the price.

• Unless you missed it, recently the Armed Forces of Yemen started retaliating against one of the largest oil produces in the world aka the Saudi usurpers of Arabia and in those retaliations they destroyed a lot of the usurpers' energy infrastructure to the point that the analysts say the Saudi oil production is completely stopped.
• With closure of Bab al-Mandab strait (in addition to Strait of Hormuz) at least a quarter of global oil supply is gone.
• On top of that Iran is still heavily bombing the US military bases across West Asia (eg. yesterday the US terrorist bases in Jordan and Iraq were destroyed).
• And of course we are in day 152 of the War of Choice the US regime started and caused a global oil shortage that is around 2 billion barrels at this point.

So by all accounts oil price should be in 3 digits not sitting in $80's range... As I said the market manipulation is so fascinating to watch

[LogitechMouse]

Here in the Philippines, we can really feel it whenever fuel prices increase. It does not affect only people who own cars because transportation costs also increase, and later we notice higher prices for food and other basic needs.

I hope the current ceasefire will continue and lead to real peace. But based on what I have observed, fuel prices rise quickly whenever there is conflict, while price reductions at the pump usually take more time. So even if crude oil becomes cheaper, I am not expecting a big rollback immediately.

Just today, prices of fuel here in our country increased yet again, and it's nearly going back to 100 PHP ($1.63) yet again. Before the war started, it was around $1.09 and it went to as high as $2.44 which is a huge problem for the transport industry. Now we're nearing to that high prices again.

As for the ceasefire, I don't think that it will happen at the nearest time possible, and if it happens, it will just probably be as weak as the first ceasefire that happened a few weeks ago. Heck, that can't even be called ceasefire because both countries are still bombing each other. It just lessen the amount of strikes, and TBH, I don't expect something good that will happen even though there will be a ceasefire. What they need is an agreement, but it seems like Iran will not have any talks to the US anymore... at least for now.

As for the price of Crude Oil, right now the war is becoming much worse as Saudi Arabia is on the mix already, so I expect that there will be more price increase in the future. Unfortunately, there's nothing that we can do about it, but to endure the pain, and adjust our expenses into it since majority of us here are using oil in whatever way possible.

[pooya87]

As for the price of Crude Oil, right now the war is becoming much worse as Saudi Arabia is on the mix already, so I expect that there will be more price increase in the future.

This is going to be long because of the way the US regime keeps escalating things trying to destabilize the global economy.

For example last night with the help of Saudi usurpers of Arabia the US regime carried out terrorist attacks against the civilians who come from all around the world to Karbala, Iraq every year to participate in the Arba'een pilgrimage as well as the base of Iraqi counter terrorism forces who were providing the security of this event. This terrorist attack (which both US regime and Saudi usurpers took responsibility for) led to dozens of civilian casualties.

There will be immediate retaliation by both Iran and Yemen punishing the Epstein Axis. But the Iraqi forces who are hosting the largest gathering of people in the world right now have given "certain malicious actors" 9 days before they also start retaliating against the Axis.

Long story short, the US regime's strategy of destabilization of the world will continue for the foreseeable future as I'd predicted last year here.

[snowpega]

...
Long story short, the US regime's strategy of destabilization of the world will continue for the foreseeable future as I'd predicted last year here.

Yeah, you are very correct. Because what I really belive that Trump is a crazy old man who is using a manipulative strategy and is trying to disturb the whole ecosystem of all international world economies. For example, when he became president, he used the strategy of tariffs to make more money and make their own country more stable, but when the Supreme court announced Trump terrif is illegal, which in result US has to pay back all the amount collected in terms of terms internationally. After that, he went madder on Iran and started to make strikes on Iran, saying that they are backing Israel.

We really know that the US is benefiting the most itself from this conflict by selling Venezuela-seized oil by disturbing the Hormuz Strait. Due to such mad behaviour of Trump, no market is stable, whether it is a physical market or an online marketplace or crypto or stock markets. Inflation rates are getting uncontrolled due to the increasing price of oil. And we really know the importance of this because the majority of things depend on oil: goods production and transport, and factories depend on the oil supply. Then, obviously, when the price of oil becomes high, how can inflation be controlled?

[yhiaali3]

Certainly, most countries have begun to feel the impact of the US-Iran war and its effect on rising fuel prices worldwide. I do not expect the truce between the two sides to last long because each side does not trust the other and accuses the other side of violating the truce.

Here in my country, the government has raised fuel and petroleum product prices three times in a row. This has caused great pressure on the population and caused the prices of all materials to rise due to the increase in fuel prices, because, as is known, there are many materials that depend on fuel, in addition to the high transportation costs.

[DrBeer]

We could argue for a long time about whether the author provided the correct chart or if "it’s something else".  We can simply check the analytics from specialized services and look at the price. For example, here: https://ru.tradingview.com/chart/?symbol=TVC%3AUKOIL

Yes, the price has fallen. But today’s drop in oil prices doesn’t mean that gas prices at the pumps will fall the day after tomorrow. This market is notably slow to react.

What will happen next? That’s a difficult question. As long as the IRGC terrorist regime remains in power, it will? in order to survive? continue to carry out terrorist attacks against all neighboring countries in the region to destabilize the global oil market and put pressure on the U.S. These impotent terrorists have no other options. But they still have missiles and UAVs. If we succeed in destroying their production facilities, warehouses, and launch sites, the terrorist regime will not survive, and the Iranian people will finally gain their freedom, while the region will achieve peace and stability. And, consequently, the global oil market will stabilize. We know that many Gulf countries are not only ready but also planning to increase oil production, which will lead to a drop in fuel prices worldwide.
Judging by the fact that Saudi Arabia, weary of terrorism perpetrated by the IRGC, has already entered the war against the terrorist regime, we can assume that other neighbors suffering from the IRGC’s terror will soon join in restoring order to the region. This will likely significantly accelerate the resolution of the problem with the IRGC’s terrorist junta.
In short, we are monitoring the situation.

P.S. Yet another "ceasefire" will yield no results, because the terrorists use these only to stockpile weapons and strike at neighboring countries. The stability of the world and global markets is inversely proportional to the survival of the IRGC junta. No IRGC means peace and stability, and vice versa.

[lombok]

Certainly, most countries have begun to feel the impact of the US-Iran war and its effect on rising fuel prices worldwide. I do not expect the truce between the two sides to last long because each side does not trust the other and accuses the other side of violating the truce.

Here in my country, the government has raised fuel and petroleum product prices three times in a row. This has caused great pressure on the population and caused the prices of all materials to rise due to the increase in fuel prices, because, as is known, there are many materials that depend on fuel, in addition to the high transportation costs.

Indeed, geopolitical tensions in oil regions always quickly spill over into the real world. Divided trust between the political actors renders the peace agreements so fragile and this causes any spikes in the prices of global energy commodities at a sudden time.

As the cost of fuel keeps increasing, changes to distribution tariffs and cost of production become unavoidable, resulting in the soaring of the price of basic necessities and directly and broadly load an economic burden on the citizen every day.

[fruktik]

Here in the Philippines, we can really feel it whenever fuel prices increase. It does not affect only people who own cars because transportation costs also increase, and later we notice higher prices for food and other basic needs.

I hope the current ceasefire will continue and lead to real peace. But based on what I have observed, fuel prices rise quickly whenever there is conflict, while price reductions at the pump usually take more time. So even if crude oil becomes cheaper, I am not expecting a big rollback immediately.

Yes, everyone is suffering from high fuel prices. And the most dangerous thing is that with fuel shortages, real famine is looming. Farmers are complaining that they simply have nothing to fuel their equipment with or are simply operating at a loss. Just today, I read a news story about harvest yields being reduced by 30%. Just think about that terrifying figure. It's a real catastrophe. Furthermore, farmers are saying they're being forced to close their businesses because they're not making any profit. And the government can't help them in this situation, as the federal budget has a huge gap of almost 6 trillion rubles.

[Die_empty]

This is going to be long because of the way the US regime keeps escalating things trying to destabilize the global economy.

For example last night with the help of Saudi usurpers of Arabia the US regime carried out terrorist attacks against the civilians who come from all around the world to Karbala, Iraq every year to participate in the Arba'een pilgrimage as well as the base of Iraqi counter terrorism forces who were providing the security of this event. This terrorist attack (which both US regime and Saudi usurpers took responsibility for) led to dozens of civilian casualties.

There will be immediate retaliation by both Iran and Yemen punishing the Epstein Axis. But the Iraqi forces who are hosting the largest gathering of people in the world right now have given "certain malicious actors" 9 days before they also start retaliating against the Axis.

Long story short, the US regime's strategy of destabilization of the world will continue for the foreseeable future as I'd predicted last year here.

The coverage of the war is expanding, which means we would have to brace for further increases in oil prices. Saudi Arabia failed to do an extensive investigation into the source of drone attacks on oil facilities in the Eastern Province and Riyadh. Some sources have reiterated that these attacks were not from the Islamic Resistance in Iraq. 

I guess that some actors that are benefiting from the war are doing everything possible to destabilise the entire Middle East. The attack on Saudi Arabia might be a false flag operation by these forces that are bent on further escalation of this conflict.

Maybe it's time to store more petroleum products because future prices are unpredictable.

[Swordsoffreedom]

Certainly, most countries have begun to feel the impact of the US-Iran war and its effect on rising fuel prices worldwide. I do not expect the truce between the two sides to last long because each side does not trust the other and accuses the other side of violating the truce.

Here in my country, the government has raised fuel and petroleum product prices three times in a row. This has caused great pressure on the population and caused the prices of all materials to rise due to the increase in fuel prices, because, as is known, there are many materials that depend on fuel, in addition to the high transportation costs.

At this point, it's fair to say that the ceasefire is no longer in effect, and neither side seem willing to negotiate anymore. The war is escalating day by day, with attack happening much more frequently than during the early stage of the conflict.

What is even more worrying is if the Houthi forces also decide to completely close off the Bab al Mandeb Strait. Fuel price could rise even more dramatically because 25% of the supply would be disrupted, rather than just 20% as before.

Oil is considered the lifeblood of the economy. If this continues for a long time, everything will become more expensive, from inflation to the prices of goods.

[pooya87]

The coverage of the war is expanding, which means we would have to brace for further increases in oil prices. Saudi Arabia failed to do an extensive investigation into the source of drone attacks on oil facilities in the Eastern Province and Riyadh. Some sources have reiterated that these attacks were not from the Islamic Resistance in Iraq.  

I guess that some actors that are benefiting from the war are doing everything possible to destabilise the entire Middle East. The attack on Saudi Arabia might be a false flag operation by these forces that are bent on further escalation of this conflict.

Maybe it's time to store more petroleum products because future prices are unpredictable.

There is no need to investigate! It is crystal clear what is happening...

Let me write some history and related news for those who don't either follow the situation or only follow Western mouthpieces who lie about these things...
Roughly 12 years ago the Saudi usurpers of Arabia started a coalition with other similar dictators in the region to invade Yemen and take over their vast amount of resources as well as taking control of a one of the most strategic chokepoints on earth called Strait of Bab al-Mandab.
This corrupt coalition with the help of NATO (specifically US and Zionists, pretty much the same Epstein Axis) started a very long and heavy bombing campaign against this poor country that lasted for years destroying majority of Yemeni infrastructure, hospitals, farms, residential areas, transport system, airfields, water and power infrastructure, etc.
In this phase, you don't see Yemen anywhere in the news. They were being slaughtered in complete media silence. At most you could find some UNICEF report which referred to Yemen as "the worst humanitarian crisis in the world".

The only problem for the Epstein Axis was that people of Yemen were hard to defeat and they were resisting. So an invasion that was supposed to end in a very short time (weeks IIRC), lasted years and has only been "paused" after 8 years of war crimes against Yemen but never ended.

Failing to take over Yemen, the Axis installed proxies in the country and the US regime called those proxies "government of Yemen" to give them legitimacy, proxies that included al-Qaeda forces, foreigners, etc. all on the payroll of the Saudis. This was also accompanied by a blockade that made the humanitarian crisis in Yemen that much worse.

This blockade continues even today. Yemen has not been able to import/export anything for years. Starvation, lack of medicine, lack of electricity, access to clean water, etc. are all serious problems over there.
However, the people of Yemen needed to resist the foreign invades so they managed to build themselves a very strong military force during this imposed war as they were defending their homes. They did that with the help of their allies such as Iran.

Now lets fast forward to earlier this month where Yemenis had enough of this aggression from the Axis. On first week of July (6-7 IIRC) the first passenger plane in years tried to land in their capital and the Saudis with the help of US, flew their fighter jets and bombed the airstrip of this civilian airport preventing the plane from landing there. That was the last straw that broke the camel's back.
Consequently after that Yemen send the Saudi aggressors and their Axis a serious warning that they either end the blockade of Yemen and the terrorist attacks against people of Yemen, or the Armed Forces of Yemen would start imposing a blockade on Saudi regime and start retaliating hard against Saudi infrastructure.

This brings us to today. Obviously the Epstein Axis doesn't want to accept defeat in the war they started and failed to overtake Yemen and the strategic Bab al-Mandab strait. So they didn't lift the blockade. Therefore the Yemeni retaliations began as the deadline was reached.
First it was retaliation by similarly bombing the Saudi airfields, then their infrastructure, then their refineries, their military bases, and so on. This is something that is ongoing.
You can find the official announcements of the Armed Forces of Yemen almost daily as spokesman of Yemeni military Brigadier General Yahya Saree comes in front of cameras and reports on each retaliatory operation.

What does this have to do with Iraq and why did the Epstein Axis attack Iraq and the pilgrims who came from all around the world for Arba'een?
Well this is a long story and we have to go back to early 2000's but I'll keep this short since I'm sure unlike Yemen, most of you are familiar with this one: The US regime illegal invasion of Iraq and the subsequent failure to take over and fully control the country and its resources including oil.
The regime's grip is weakening every day that passes and it is happening all thanks to the Iraqi Resistance that has kicked some serious Yankee butt over the years as the Axis still illegally occupies part of Iraqi soil.

If you have followed the Iraqi news, you'd know that the US regime who still tries to take over Iraq and its resources fully, has been trying to "disarm" the Iraq Resistance specially the one called al-Hashd al-Sha'abi (means Popular Mobilization Forces) that is part of the Iraqi military and under the supervision of the Commander General of Iraqi Armed Forces. This is the same branch that defeated the US Army branch known as Takfiri Terrorists, namely ISIS.
Through these attacks, assassinations, terrorist attacks, etc. the US regime is desperately trying to weaken the only force that stands between them and free access to Iraqi resources. So they used Yemen's retaliation against Saudis as an excuse to carry out these terrorist attacks against the pilgrims in Iraq (during Arba'een which is a very significant event by the way).

[yhiaali3]

Certainly, most countries have begun to feel the impact of the US-Iran war and its effect on rising fuel prices worldwide. I do not expect the truce between the two sides to last long because each side does not trust the other and accuses the other side of violating the truce.

Here in my country, the government has raised fuel and petroleum product prices three times in a row. This has caused great pressure on the population and caused the prices of all materials to rise due to the increase in fuel prices, because, as is known, there are many materials that depend on fuel, in addition to the high transportation costs.

At this point, it's fair to say that the ceasefire is no longer in effect, and neither side seem willing to negotiate anymore. The war is escalating day by day, with attack happening much more frequently than during the early stage of the conflict.

What is even more worrying is if the Houthi forces also decide to completely close off the Bab al Mandeb Strait. Fuel price could rise even more dramatically because 25% of the supply would be disrupted, rather than just 20% as before.

Oil is considered the lifeblood of the economy. If this continues for a long time, everything will become more expensive, from inflation to the prices of goods.

Yes, this is precisely what is feared. The possibility of Houthi forces completely closing the Bab al-Mandab Strait has become a very real prospect after the US and Saudi strikes against Shia Popular Mobilization Forces in Iraq yesterday.

This is the most dangerous scenario because a complete and simultaneous closure of the Straits of Hormuz and Bab al-Mandab would lead to a near-total paralysis of global energy supply, and as you mentioned, it would halt 25% of supplies, which could cause the global economy to enter a severe recession.

[Lida93]

Here in the Philippines, we can really feel it whenever fuel prices increase. It does not affect only people who own cars because transportation costs also increase, and later we notice higher prices for food and other basic needs.

I hope the current ceasefire will continue and lead to real peace. But based on what I have observed, fuel prices rise quickly whenever there is conflict, while price reductions at the pump usually take more time. So even if crude oil becomes cheaper, I am not expecting a big rollback immediately.

I can't even say much about the situations of things in my country with the effect of oil price affecting prices of every thing you can think of, even down to locally produced cash crops because they would have to be transported from the local towns to the city. With their short timeframe, the ceasefire(s) hasn't made any significant positive impact on prices of goods and services as much as the hardship the long conflict has done on the economies of many countries.

The world would have to prepare for the worse situations as this conflict doesn't look like what's going to end sooner because Iran is definitely not going to surrender to an illegitimate invasion.

[Curious T]

The problem is that when there is inflation, before it can be corrected may be long or it might not be corrected. When we thought the war was over, the price of crude oil fall to $70, but the price of petrol, diesel and other petroleum products that have increased and caused inflation in my country are not falling. When it wanted to fall but just a little and not to prewar time, Trump started the war again.

The reason the price of oil products doesn't drop much when the oil prices drop is because of the last line of your post. Sometimes the companies might be greedy, but other times, it's the uncertainty of the situation that makes them not sell at lower prices. Just like the example you gave, imagine the price of petrol and gas reduces to pre-war levels and then, all of a sudden, the war starts again, and the oil prices go up. This means they will make losses because they will have to buy oil at higher prices.

This is why instability is very bad for business. Not knowing how things will be by next month or next week will make the seller sell at a price where, no matter what happens, they won't lose.