As of 7:00 a.m. U.S. Eastern Time on October 5, the price of a barrel of Brent crude stood at $105.81. This was $2.44, or 2.36%, higher than the previous morning, when quotations were at $103.37, Fortune reports.
Over the month, the price of Brent rose by 8.11% — from $97.87 per barrel. Compared with the figure a year ago, when a barrel cost $65.57, the increase amounts to 61.36%. The publication notes that over the year, the oil price increased by approximately $40 per barrel.
Oil price movements are determined primarily by supply and demand, as well as news about their potential changes. Risks of an economic downturn, wars and geopolitical events, as well as OPEC+ decisions, can quickly affect prices.
The price of oil changes continuously while futures markets are open. In such markets, participants enter into contracts to buy or sell oil in the future, so quotations are adjusted as contracts are traded.
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The cost of crude oil is one of the key components of the retail price of gasoline, although it is also affected by refining costs, the operations of wholesale suppliers, taxes and gas station markups. According to Fortune, crude oil usually accounts for more than half of the price of a gallon of fuel.
Higher oil quotations usually lead to higher gasoline prices. At the same time, a decline in oil prices may not be immediately reflected in prices at gas stations. More expensive oil also affects energy and transportation costs and, accordingly, the cost of everyday goods.
Brent is the main global price benchmark for oil, while West Texas Intermediate is considered the primary benchmark in North America.
Source: UA
