As of 8:15 a.m. Eastern Time, oil traded at $115.41 per barrel using the Brent benchmark, down 23 cents from the previous morning and up approximately $49.50 over the past year. Oil prices depend mainly on supply and demand, but they can change rapidly because of wars, recessions, sanctions, OPEC+ decisions and energy policies. Crude oil typically accounts for more than half of the final price of a gallon of gasoline, while the U.S. Strategic Petroleum Reserve can cushion price increases during supply shocks. Brent is the main global benchmark and West Texas Intermediate is the North American benchmark; their historical performance has been marked by spikes and crashes, notably during the 1970s oil shock, the 2008 financial crisis and the Covid-19 pandemic. Increased U.S. shale production can expand supply and limit price spikes, while high oil prices raise energy, transportation and broader inflation costs.
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