On Wednesday, oil prices continued their downward trend, with Brent crude futures for August falling 1.7% to $75.79 per barrel, marking the lowest price since February 27. Similarly, U.S. West Texas Intermediate futures also decreased by 1.7%, settling at $71.98 per barrel. The decline in oil prices comes amid U.S.
President Donald Trump's criticism of oil companies for not reducing gasoline prices in line with falling crude prices, which he described as price gouging. Trump has directed the Department of Justice to investigate this issue.
However, Karen Young, a senior research scholar at Columbia University, pointed out that gasoline prices are influenced by various factors, including state and local taxes, and that it takes time for changes in crude prices to affect consumer prices.
Additionally, investors are optimistic about the situation in the Strait of Hormuz, where maritime traffic is expected to normalize following safety guarantees for over 11,000 stranded seafarers. This development could alleviate supply chain pressures that have been exacerbated by delays in transit times and air freight disruptions.
Aditi Rasquinha, CEO of DHL Global Forwarding Greater China, noted that while the opening of the Strait is a positive sign, it will take time for the supply chain to fully recover