Oil prices fell. Before celebrating, wait.
Two weeks ago, the Brent barrel hit 119 dollars, uh, the highest price since 2022. All because of the mess in the Middle East, the Strait of Hormuz effectively closed, ships attacked... the usual chaos but worse.
And suddenly, it drops more than 15%. What happened? Well, Trump posted something on Truth Social about negotiations with Iran and the market believed it. I mean, literally a post moved the global crude price. Notice how fragile everything is.
The point is this: it’s not that things have calmed down. It’s that the market is so nervous that it reacts to any signal, real or not. One day it goes up, the next day it falls, and in the meantime, normal people keep paying for gasoline whatever the price.
J.P. Morgan says that Brent should average about 60 dollars this year. Today it’s at 102. Someone is very mistaken.