Diesel prices in France hit a record of 2.41 euros per liter on Sunday, continuing an unbroken streak of records since September 11, despite a recent decline in Brent crude falling back below $100. This gap is explained by a transmission delay between crude oil market prices and pump prices, which can range from several days to several weeks. Brent’s retreat, after surpassing $107 per barrel in September, stems from de-escalation signals in the Middle East, notably the prospect of Iran reopening the Strait of Hormuz. The French government was to meet Monday to decide on potential consumer aid measures in response to the surge in pump prices. Economists note that pump prices rise like a rocket when crude climbs, but fall like a feather when it declines.
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