Energy Prices

Energy prices decreased 14.0% month on month in June, following May’s 1.6% rise.

After rising for five months, energy prices crashed at the sharpest pace in several years in June after Iran and the U.S. began peace talks and agreed to reopen the Strait of Hormuz. Oil exports via the Persian Gulf briefly peaked at about 80% of prewar levels, and even though some tit-for-tat U.S. and Iranian attacks pushed down that number late in the month, most analysts believe both countries have little interest in resuming a war. As a result, the average prices of crude oil, gasoline, diesel and European natural gas fell sharply in June. On the flipside, the prices of coking and thermal coal plus U.S. natural gas increased, with the former bolstered by stronger Asian import demand and the latter by increased exports, hot weather and stagnant production.