Crude oil is on track to have its largest quarterly decline since the 2020 market crash as the U.S. and Iran continue negotiations allowing tanker traffic through the Strait of Hormuz to recover.
Crude oil prices have plummeted to post a 20% monthly decline and a 30% quarterly plunge to their lowest levels since late February. U.S. West Texas Intermediate (WTI) is hovering around $68 to $69 per barrel, while international Brent crude trades near $72, though analysts warned of underestimating the risk of renewed disruption.
Global supplies are rebounding faster than anticipated. High export volumes from Iran, combined with Russian seaborne shipments, have shifted fears from scarcity to a potential supply glut. The sharp decline in oil prices has resulted in a massive selloff, with crude dropping roughly 21% in a single month. This easing in wholesale costs has translated to lower fuel costs at the gas pump.
In Texas, according to AAA Gas Prices, the average price for regular unleaded gas is $3.30 per gallon. Regionally, Brownsville is averaging $3.18 per gallon; Dallas/Fort Worth, $3.25 per gallon; Houston, $3.38 per gallon; San Antonio, $3.19 per gallon; Austin, $3.36 per gallon; and El Paso: $3.69 per gallon.
The average regular gas price in Levelland is around $3.30 to $3.35 per gallon, aligning closely with the AAA Gas Prices statewide average.
Crude oil production in the Middle East is estimated to have rebounded to between 14.6 million barrels per day (bpd) and 15 million bpd earlier this month amid the ceasefire between Iran and the United States. Saudi Arabia, the United Arab Emirates and Qatar continue loading oil and LNG onto vessels at their Persian Gulf ports, despite this weekend’s flare-up in the region, while Iran has renewed loadings from Kharg Island, its key oil export port in the Gulf, after the U.S. waived the sanctions on Iranian oil sales, including in U.S. dollars, until August 21.