"No one can say for sure where oil prices will go next. Many forces shape the market-but at the core, it's still about supply and demand. When risks like a potential recession or war ramp up, oil prices can change direction quickly."
"When you buy gas at the pump, you're covering more than the cost of crude oil. You're also paying for every step in the process, including refineries, wholesalers, taxes, and the markup your local gas station adds. Even so, crude oil has the biggest influence on what you pay, often making up more than half the cost per gallon."
"When oil prices jump, gas prices usually climb right along with them. But when oil falls, gas prices often slip much more slowly-a pattern sometimes called "rockets and feathers.""
"If an emergency hits, the U.S. keeps a backup supply of crude oil called the Strategic Petroleum Reserve. It's mainly there to protect energy security during crises, such as sanctions, catastrophic storm damage, even war. It can also help cushion the blow when supply shocks send prices soaring."
Oil trades at $112.93 per barrel, up $2.85 from the prior morning and about $47 higher than a year ago. Oil price direction cannot be predicted with certainty because many forces affect the market, with supply and demand at the core. Recession or war risks can shift prices quickly. Gas pump prices reflect more than crude oil, including refining, wholesalers, taxes, and local station markups. Crude oil often accounts for more than half of the cost per gallon, so oil increases usually raise gas prices, while oil declines can lead to slower gas price drops. The U.S. Strategic Petroleum Reserve provides backup crude for emergencies and can cushion supply shocks, but it is not intended for long-term fixes. Oil and natural gas are linked, since changes in oil can shift industrial fuel choices and alter natural gas demand.
Read at Fortune
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