At 6:45 a.m. Eastern Time, oil was trading at $110.45 per barrel based on the Brent benchmark, down $2.15 from the previous morning and about $45 higher than a year earlier. Supply and demand remain the market’s main drivers, while wars, recessions, OPEC+ decisions and energy policies can produce sharp price swings. Crude oil typically accounts for more than half the cost of a gallon of gasoline, although refining, distribution, taxes and retailer margins also influence pump prices. The U.S. Strategic Petroleum Reserve can cushion supply shocks during emergencies but is not designed to solve long-term problems. Oil prices have historically been highly volatile, rising during wars and supply disruptions and falling amid recessions and oversupply, while higher prices can contribute to inflation and increase transportation and distribution costs.
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