Oil traded at $100.20 per barrel, up 67 cents from the prior morning and about $35.30 over the past year. Future oil price direction cannot be predicted because multiple factors can shift quickly, especially when risks of economic downturn or war rise. Gas pump prices reflect more than crude oil, including refining, wholesaling, taxes, and local markups, but crude typically accounts for more than half of the per-gallon price. When oil rises, gas prices usually rise quickly, while declines often take longer to reach pumps. The U.S. Strategic Petroleum Reserve can soften price spikes during supply shocks, providing short-term relief for consumers and critical services. Oil and natural gas prices are linked because industries may substitute fuels, changing natural gas demand when oil prices move.
"It's impossible to predict the future of oil prices. Several factors determine the movement of oil, but it ultimately boils down to supply and demand. Again, when threats of economic downturn, war, etc. are high, the oil trajectory can turn rapidly."
"When you pay for gas at the pump, you're paying for more than just the crude oil itself; you're also springing for links along the chain, such as the refineries and wholesalers-not to mention taxes and local gas station markups. Still, the crude oil aspect affects the final price most dramatically, as it typically accounts for more than half the price per gallon."
"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")."
"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."
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]