"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 case of disaster, 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 9 a.m. Eastern Time, oil prices were $111.25 per barrel, reflecting a significant increase over the past year. Oil prices directly impact gas prices, which include costs from refineries, wholesalers, taxes, and markups. The U.S. Strategic Petroleum Reserve serves as an emergency stockpile to stabilize prices during crises. Oil and natural gas prices are interconnected, with fluctuations in oil prices affecting natural gas demand as industries may switch fuels based on price changes.
Read at Fortune
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