Oil was priced at $104.68 per barrel at 9 a.m. Eastern Time, down $4.08 from the prior morning and about $40.46 higher than a year earlier. Oil price movements are difficult to forecast precisely because many factors affect the market, but supply and demand ultimately drive outcomes. Economic recession worries, war, and large-scale disruptions can shift oil’s path quickly. Gas pump prices reflect more than crude, including refining and transportation costs, taxes, and local station markups. Because crude typically forms most of the per-gallon cost, gas prices often rise with oil but may fall more slowly, a pattern described as “rockets and feathers.” The U.S. Strategic Petroleum Reserve can provide temporary relief during supply shocks. Oil and natural gas prices are linked because industries may substitute between fuels when oil changes.
"At 9 a.m. Eastern Time today, oil was priced at $104.68 per barrel with Brent serving as the benchmark (we'll explain different benchmarks later in this article). That's a drop of $4.08 compared with yesterday morning and around $40.46 higher than the price one year ago."
"It's impossible to forecast oil prices with detailed precision. Many different elements affect the market, but ultimately it boils down to supply and demand. When worries about economic recession, war, and other large-scale disruptions increase, oil's path can shift fast."
"Gas prices at the pump don't only track crude oil. They also include what it takes to refine and move that fuel, the taxes layered on top, and the extra markup your local station adds to stay in business. Since crude oil generally makes up a majority of the per-gallon cost, changes in its price have an outsized impact. When oil surges, gas prices typically rise in tandem. But when oil retreats, gas prices often lag on the way down, a trend sometimes described 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. It's not a long-term answer and is more meant to provide temporary relief, assisting consumers and keeping critical parts of the economy running, like key industries, emergency services, public transportation, etc."
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