"When oil prices spike, so do gas prices. And frustratingly, when oil prices drop, gas prices tend to take their time drifting down to the lower price, sometimes referred to as 'rockets and feathers.'"
"The U.S. has a store of crude oil known as the Strategic Petroleum Reserve, primarily for energy security in emergencies, but it can also help soften price hikes during supply shocks."
"A big change in oil prices can affect natural gas by extension. If oil prices increase, some industries may swap natural gas for some segments of their operations where possible, which increases demand for natural gas."
As of 8:45 a.m. Eastern Time, oil was priced at $96.26 per barrel, reflecting a $29 increase over the past year. Oil prices are unpredictable and influenced by various factors, including economic conditions and geopolitical events. The price of crude oil significantly impacts gas prices, which often rise quickly but fall slowly. The U.S. Strategic Petroleum Reserve serves as an emergency stockpile to stabilize prices during crises. Additionally, fluctuations in oil prices can affect natural gas demand as industries may switch fuels based on cost.
Read at Fortune
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