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Oil Falls 8% to Three-Month Low; Gasoline Stays Near $3.12
Brent crude slid 8% to $72 on the Iraq waiver and OPEC+ plans. Retail pump prices in the U.S. and India remain near unchanged levels. Refinery margins and taxes explain the disconnect.
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Brent crude fell roughly 8% over the last five sessions, touching a three-month low near $72 a barrel. The move followed a U.S. decision to grant a sanctions waiver to Iraq, allowing exports through a Turkish pipeline, and OPEC+ signals that it would proceed with a planned output increase in April.
Retail prices have not followed. In the U.S., the national average for regular gasoline stood at $3.12 a gallon on Monday, down only 2 cents from a week earlier, according to AAA. In India, state-owned oil marketing companies have kept petrol and diesel prices unchanged since mid-February.
A lag between crude and retail moves is normal, typically one to three weeks. The current gap is wider than historical averages and has persisted longer than in previous crude selloffs. Refinery margins explain part of the disconnect. When crude falls, refineries that bought expensive feedstock try to protect margins by keeping product prices elevated. U.S. spring maintenance season has reduced refinery runs, tightening gasoline supply even as crude supply rises.