"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."
"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."
"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.'"
"A big change in oil prices can affect natural gas by extension. For example, 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 8:15 a.m. Eastern Time, oil is trading at $102.47 per barrel, reflecting a $1.03 increase from the previous day and a $29.44 rise from a year ago. Oil prices are primarily driven by supply and demand dynamics, with external risks like recession or war causing volatility. Gas prices are significantly impacted by crude oil costs, often comprising over half of the total price. The U.S. Strategic Petroleum Reserve serves as a backup supply during emergencies, providing short-term relief without addressing long-term issues. Oil and natural gas prices are interconnected, with changes in oil prices affecting natural gas demand.
Read at Fortune
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