"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."
Oil was priced at $104.07 per barrel at 9 a.m. Eastern Time, up $3.62 from the prior morning and about $40 higher than a year earlier. Oil price direction cannot be forecast with detailed precision because many factors affect markets, but supply and demand remain central. Economic recession worries, war, and large-scale disruptions can shift oil’s path quickly. Gas pump prices depend not only on crude oil but also on 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 and may fall more slowly, a pattern described as “rockets and feathers.” The U.S. Strategic Petroleum Reserve can provide temporary relief during supply shocks, supporting energy security and helping keep critical services running. Oil and natural gas prices are linked because industries may substitute fuels when oil rises, affecting natural gas demand.
Read at Fortune
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