The global benchmark oil price has fallen below US$ 76 a barrel — the price it was trading at before the war in Iran began.

Brent crude fell below the psychologically important US$ 76 figure as investors becoming increasingly encouraged that oil tanker traffic through the Strait of Hormuz could soon return to normal.

Meanwhile, diesel prices fell below US$ 5 a gallon in the United States for the first time in more than three months.

The average price of diesel fell two cents to US$ 4.98 according to AAA, the first time it has been below the US$ 5 benchmark since March 16. The price of diesel has been falling steadily since reaching its own four-year high of US$ 5.67 on May 6.

Although relatively few Americans use diesel in their cars, the higher price of diesel can put upward pressure on the price of nearly all US goods as truckers impose fuel surcharges on their deliveries, according to experts.

For regular gas, the average price being charged by American gas stations rose two-tenths of a cent to US$ 3.93, which is the same price as Tuesday’s average when rounded to the nearest cent. But it ended a streak of 34 straight days of decreases from the when prices hit a four-year high of US$ 4.56 a gallon.

Hopes for peace talks between the United States and Iran that led to the recent reopening of the Strait of Hormuz has led to the slow but steady decline of gas prices over the last month. But there are still concerns about how soon oil will start to flow through the strait in sufficient quantities to meet global demand this summer.

Source: CNN

– Agencies