"When you pay for gas at the pump, you're paying for more than just the crude oil itself; you're also springing for links along the chain, such as the refineries and wholesalers—not to mention taxes and local gas station markups."
"The U.S. has a store of crude oil known as the Strategic Petroleum Reserve, primarily for energy security in emergencies, which can help soften price hikes during supply shocks."
"Oil and natural gas are both major energy fuels. A big change in oil prices can affect natural gas by extension, as industries may swap natural gas for oil where possible."
As of 8:30 a.m. Eastern Time, oil was priced at $111.10 per barrel, reflecting a $37.69 increase over the past year. Oil prices are unpredictable and depend on various factors, including economic conditions and geopolitical events. Gas prices are significantly affected by crude oil prices, which typically account for more than half of the cost per gallon. The U.S. Strategic Petroleum Reserve serves as an emergency stockpile to stabilize prices during crises. Changes in oil prices can also impact natural gas demand.
Read at Fortune
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