"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-more of an immediate relief to assist the consumer and keep critical parts of the economy running, like key industries, emergency services, public transportation, etc."
Oil traded at $107.67 per barrel using Brent as the benchmark, up 48 cents from the prior morning and about $43 higher over the past year. Future oil price direction cannot be predicted because multiple factors can shift supply and demand quickly, especially when risks like economic downturns or wars rise. Gas pump prices reflect more than crude oil, including refining, wholesaling, taxes, and local markups, but crude typically drives more than half of the per-gallon cost. When oil spikes, gas prices usually rise, while declines often lag. The U.S. Strategic Petroleum Reserve can soften price spikes during supply shocks, providing short-term relief. Oil and natural gas are linked because industries may substitute fuels, changing natural gas demand when oil prices move.
Read at Fortune
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