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Econbrowseranalysis

Why Are Oil Prices So Low?

Econbrowser
Monday, May 18, 2026 at 4:33 AM
~4 min read
InflationEnergy

Original Report

The odds of the Strait of Hormuz re-opening by July 1st is at all time lows; and yet the front month (July) Brent is at only $111. Figure 1: Brent spot price, in logs 3/18/2026=0 (blue), cash price...

The odds of the Strait of Hormuz re-opening by July 1st is at all time lows; and yet the front month (July) Brent is at only $111. Figure 1: Brent spot price, in logs 3/18/2026=0 (blue), cash price (light blue), and odds of Strait of Hormuz remains closed as of 7/1/2026 (red). Source: EIA via […]

Glass House Analysis

Inflation is the silent tax that erodes purchasing power, hitting hardest those who can least afford it. When grocery bills rise faster than wages, families face impossible choices between food, medicine, and rent. Unlike market volatility that mainly affects investors, inflation touches everyone who buys groceries, fills a gas tank, or pays rent.

The implications extend beyond the immediate news cycle. Every economic development creates ripples that affect employment, prices, and opportunities in ways that may not be immediately visible but are deeply felt. By tracking these connections, we can better understand how the economy truly works—not as an abstract machine, but as a human system shaped by and shaping the lives of millions.

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