"When oil prices jump, gas prices usually climb right along with them. But when oil falls, gas prices often slip much more slowly—a pattern sometimes called 'rockets and feathers.'"
"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."
"If oil prices increase, some industries may swap natural gas for some segments of their operations where possible, which increases demand for natural gas."
As of 8:45 a.m. Eastern Time, oil is trading at $113.40 per barrel, significantly higher than last year. Oil prices are unpredictable, influenced by various factors including potential recessions and geopolitical tensions. Gas prices reflect more than just crude oil costs, incorporating refining, taxes, and local markups. The U.S. Strategic Petroleum Reserve serves as a backup supply during emergencies, providing short-term relief. Changes in oil prices can also impact natural gas demand, as industries may switch energy sources based on price fluctuations.
Read at Fortune
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