Oil Prices Hit 3-Month Lows as Crude Falls Below $90, June 13

Crude oil prices have fallen to their lowest levels in months, with Brent crude settling at $87.33 per barrel and WTI crude at $84.88 on Friday. The national average gas price dropped to $4.09 per gallon, marking the 23rd consecutive day of declines. This pullback defies earlier predictions of $200-per-barrel oil and reflects a complex mix of reduced demand, increased supply, and strategic reserve releases.

Why Oil Prices Are Collapsing

Crude oil prices have fallen sharply despite the closure of the Strait of Hormuz, which the International Energy Agency called the most severe oil supply shock in history. Brent crude settled at $87.33 per barrel and WTI at $84.88, marking their lowest levels in months. The decline contradicts analyst predictions that oil would reach $200 per barrel, which would have pushed gas prices to $6.50 to $7.00 per gallon.

China Cuts Oil Imports Dramatically

China has slashed crude oil imports from 11.6 million barrels per day to 7.8 million, the lowest level since 2017. This reduction has freed up millions of barrels daily for other countries to purchase. The drop represents a demand collapse that has flooded global markets with available supply, offsetting supply disruptions from the Middle East conflict.

U.S. Becomes World’s Top Oil Exporter

The United States has emerged as the world’s largest crude oil exporter, surpassing Saudi Arabia and Russia with approximately 10.5 million barrels per day in exports. U.S. shale production and technological advances have transformed the country from a major oil importer into a global energy supplier. This shift has helped stabilize global markets amid Middle East disruptions.

Gas Prices Fall Across the U.S.

The national average gas price dropped to $4.09 per gallon, down 47.8 cents over 23 days. Los Angeles County prices fell to $5.77 per gallon, their lowest since March 20. Crude oil prices remaining below $100 per barrel have driven these declines, providing relief to drivers after months of elevated fuel costs.

Final Thoughts

Oil prices have collapsed to 3-month lows despite Middle East conflict, driven by China’s demand collapse and surging U.S. exports. Investors should monitor whether prices stabilize near $85-90 or face further pressure if global demand remains weak.

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