At 6:30 a.m. Eastern Time, oil priced using the Brent benchmark reached $94.58 per barrel, down $1.14 from the previous morning but about $31.50 higher than a year earlier. Oil prices remain inherently unpredictable, with supply and demand ultimately determining prices despite the influence of wars, recessions, and supply disruptions. Because crude oil accounts for more than half of the price paid at the pump, sharp increases quickly affect gasoline prices, while declines are often passed along more slowly, the “rockets and feathers” effect. The U.S. Strategic Petroleum Reserve helps secure energy supplies during emergencies but cannot moderate prices over the long term. Higher oil prices can also increase demand for natural gas, while their impact on inflation and the broader economy is transmitted through energy, transportation, and logistics costs.
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