"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. It's not meant to solve long-term problems. Instead, it provides quick relief for consumers and helps keep vital parts of the economy moving, like essential industries, emergency services, and public transit."
Oil trades at $110.43 per barrel, above yesterday’s level and far above a year ago. Oil prices can rise or fall depending on supply and demand, with risks such as recession or war causing rapid direction changes. Gas pump prices reflect more than crude oil, including refining, wholesalers, taxes, and local station markups. Crude oil often makes up more than half of the cost per gallon, so oil increases usually lift gas prices quickly, while oil declines can lead to slower gas price drops, a pattern often called “rockets and feathers.” The U.S. Strategic Petroleum Reserve provides backup crude oil for emergencies and can cushion supply shocks, but it is not designed for long-term fixes. Oil and natural gas prices are linked because industries may shift fuel use when oil changes, affecting natural gas demand.
Read at Fortune
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