European motorists that also know what to look for when observing the charts of the crude oil market have been thoroughly disappointed when taking their vehicles to the pump.
That’s because although the Brent, the benchmark crude oil, has plunged 21 percent since May 6, taking the area in line with the common definition of a bear market, for the first time in more than a decade the milestone drop has not been joined by a traditional crash in retail gasoline and diesel. More so, according to figures compiled by the European Commission, actually prices have gone up modestly during the timeframe. Energy experts say the paradox is easy to solve – the strong US economy has lured in more cargos of fuel that usually across the Atlantic as America is in full summer driving season. The graphics have been pointing out that normally, European retail prices were going down every time crude oil had massive flops. “The lower oil price has created a lot of anger and frustration amongst drivers as they are not seeing those downward moves reciprocated at the pumps,” comments Luke Bosdet, spokesman for the AA, the U.K.’s largest motoring organization.
According to economists, the European Union is forecasting an economic expansion of 1.5 percent compared to the US economy that should soar 2.3 percent this year. And Americans have already driven 1.26 trillion miles during the first five months of the year, according to Federal Highway Administration figures posting a record for the period. When it comes to diesel, the situation is a tad better – the fuel has joined crude oil in sliding across Europe as Russia, the US and the Middle East are keeping the supplies high for the period.