"Oil prices are inherently unpredictable. While many variables come into play, the basic push and pull of supply and demand is what ultimately matters. In times of heightened concern about recession, war, or other major disruptions, oil can swing suddenly."
"Because crude oil usually accounts for more than half of the price per gallon, it tends to move the needle the most. Sharp increases in oil almost always show up quickly at the pump. Declines in the price of oil, on the other hand, often translate into slower, more delayed drops in gas prices."
"When an emergency arises, the U.S. has a reserve of crude oil called the Strategic Petroleum Reserve. Its chief function is to secure energy during disasters like sanctions, severe storm damage, or war. It can also help take the edge off brutal price spikes when supply gets hit."
Oil prices reached $113.71 per barrel, up $4.93 from the previous day and $42 above year-ago levels. Oil prices remain inherently unpredictable, driven by supply and demand fundamentals that can shift suddenly during recessions, wars, or major disruptions. Crude oil comprises more than half of gas pump prices, alongside refinery costs, wholesaler markups, government taxes, and station markups. Price increases transmit quickly to pumps, while decreases occur more slowly—the "rockets and feathers" effect. The U.S. Strategic Petroleum Reserve provides emergency supply during crises like sanctions or storms, offering short-term relief rather than long-term solutions. Oil and natural gas prices are interconnected; rising oil costs can increase natural gas demand as industries substitute fuels.
Read at Fortune
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