"At 8:45 a.m. Eastern Time today, oil was priced at $111.04 per barrel with Brent serving as the benchmark (we'll explain different benchmarks later in this article). That's a gain of $3.22 compared with yesterday morning and around $46 higher than the price one year ago."
"It's impossible to forecast oil prices with detailed precision. Many different elements affect the market, but ultimately it boils down to supply and demand. When worries about economic recession, war, and other large-scale disruptions increase, oil's path can shift fast."
"Gas prices at the pump don't only track crude oil. They also include what it takes to refine and move that fuel, the taxes layered on top, and the extra markup your local station adds to stay in business. Since crude oil generally makes up a majority of the per-gallon cost, changes in its price have an outsized impact."
"In case of emergency, the U.S. has a store of crude oil known as the Strategic Petroleum Reserve. Its primary purpose is energy security in case of disaster (think sanctions, severe storm damage, even war). But it can also go a long way toward softening crippling price hikes during supply shocks. It's not a long-term answer and is more meant to provide temporary relief, assisting consumers and keeping critical parts of the economy running, like key industries, emergency services, public transportation, etc."
Oil was priced at $111.04 per barrel with Brent as the benchmark, up $3.22 from the prior morning and about $46 higher than a year ago. Oil prices cannot be forecast with detailed precision because many factors influence the market, but supply and demand remain the core drivers. Economic recession worries, war, and other large-scale disruptions can shift oil’s path quickly. Gas pump prices depend not only on crude oil but also on refining and transportation costs, taxes, and local station markups. Crude typically makes up most of the per-gallon cost, so gas prices often rise quickly when oil surges and fall more slowly when oil retreats. The U.S. Strategic Petroleum Reserve provides temporary relief during supply shocks to support energy security and keep critical services running. Oil and natural gas are linked because industries may substitute between them when oil prices change.
Read at Fortune
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