"When oil prices jump, gas prices usually climb right along with them. But when oil falls, gas prices often slip much more slowly—a pattern sometimes called 'rockets and feathers.'"
"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."
"If oil prices increase, some industries may swap natural gas for some segments of their operations where possible, which increases demand for natural gas."
Oil is currently trading at $110.69 per barrel, which is $35 higher than a year ago. Oil prices are driven by supply and demand dynamics, influenced by risks like recession or war. Gas prices reflect more than just crude oil costs, including refining and distribution expenses. The U.S. Strategic Petroleum Reserve serves as a backup supply during emergencies, providing short-term relief without addressing long-term issues. Changes in oil prices can also impact natural gas demand as industries may switch energy sources based on price fluctuations.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]