"West Texas Intermediate futures for May fell about 16% to below $95 a barrel early Wednesday, as investors cheered President Trump's two-week truce with Iran."
"Gas prices are still much higher than even a few weeks ago and they could remain elevated for a while, analysts say."
"A key reason is that it typically takes a couple of weeks to refine crude oil into gasoline, transport it through pipelines, tankers, and trucks, and deliver it to gas stations."
"Even if the ceasefire holds, a return to 'normal' could still take months given the time it takes to reopen shuttered wells, and before crews and vessels are in the right places."
Crude oil futures have dropped significantly following a US-Iran ceasefire, with West Texas Intermediate futures falling about 16% to below $95 a barrel. Wholesale gasoline futures also decreased by 10%. Despite these declines, gas prices remain high compared to pre-war levels, with regular gas exceeding $4.15 per gallon. The refining and distribution process delays price reductions, and disruptions in the global energy supply chain may prolong elevated prices. Analysts suggest that even with a ceasefire, returning to normal conditions could take months.
Read at www.businessinsider.com
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