Oil climbs to $104.74 a barrel on the Brent benchmark

Brent crude oil was trading at $104.74 per barrel at 7:15 a.m. Eastern Time, a gain of $3.31 since the previous morning and roughly $38.60 above the level a year earlier. Market observers attribute price swings to the interplay of global supply and demand, as well as to shocks such as economic slowdowns or geopolitical conflicts. While crude oil is the largest component of gasoline prices, the pump price also incorporates refining costs, wholesale distribution, taxes and retailer margins, leading to the "rockets and feathers" effect where fuel prices rise quickly with oil spikes but fall more slowly when oil retreats.

The United States maintains the Strategic Petroleum Reserve to provide short-term relief during emergencies like sanctions or natural disasters, though it is not a long-term solution. Changes in oil pricing can also influence natural-gas markets, as some industries may substitute gas for oil when crude becomes expensive. Historical data from benchmarks such as Brent and West Texas Intermediate illustrate that oil prices have fluctuated dramatically over decades, driven by wars, recessions, OPEC decisions and evolving energy policies.