Brent posts biggest weekly drop since pandemic; diesel lags 27%, firms seek margin recovery

Brent crude experienced its largest weekly decline since the pandemic following the Democratic victory in the U.S., yet retail gasoline and diesel prices have not fallen proportionally, with diesel lagging by up to 27%. Companies are attempting to recover lost margins, suggesting that downstream pricing is decoupled from upstream crude movements, likely due to refining, distribution, and tax factors. This divergence matters for inflation expectations and consumer sentiment, as energy costs remain sticky despite cheaper crude.

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