Petrol prices drop globally as US average falls below $4, Iran deal eases crude supply fears
By Aboki Forex —
Global fuel prices are falling fast. In the United States, the national average for a gallon of petrol dropped to $3.99 on Thursday. That is down from over $4.50 just one month ago. The relief comes just as Americans enter the summer driving season.
Diesel prices are also coming down. They had surged past $5.60 per gallon last month. But experts now expect diesel to fall below $5 soon.
The price drop is linked to a major shift in global oil politics. President Trump announced a 60-day memorandum of understanding with Iran. The deal aims to end the ongoing conflict and reopen the Strait of Hormuz for commercial shipping.
The Strait of Hormuz had been closed for three months. That shutdown removed more than 1 billion barrels of oil from the global market. It pushed crude prices to multiyear highs. Petrol and diesel prices followed because refining costs and tight storage amplify price swings.
Now that a deal is signed, crude prices are plunging. Brent crude, the international benchmark, has fallen about 13% in the last five trading sessions. GasBuddy analyst Patrick de Haan said the national average could head toward $3.70 per gallon. He called it good news for motorists, adding that diesel will soon fall below $5 per gallon.
For Nigerian readers, this global trend matters. Lower international crude prices affect Nigeria's oil revenue. But cheaper petrol and diesel also reduce import costs for refined products. That could ease pressure on pump prices in Nigeria if global trends hold.