"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."
"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."
"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 currently trades at $91.54 per barrel on the Brent benchmark, up 99 cents from the previous day and $22 higher than a year ago. Oil prices depend fundamentally on supply and demand, with rapid changes occurring during economic or geopolitical risks. Gas pump prices reflect crude oil costs plus refining, wholesale, taxes, and station markups, with crude oil typically representing over half the final price. Gas prices rise quickly with oil increases but fall slowly when oil declines, a pattern called "rockets and feathers." The U.S. Strategic Petroleum Reserve provides emergency crude oil supplies during crises to protect energy security and stabilize prices. Oil and natural gas prices are interconnected, as industries may substitute between them based on price changes.
Read at Fortune
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