Brent falls to $112.60 per barrel — Fortune

Benchmark Brent crude was trading at $112.60 per barrel as of 6:30 a.m. U.S. Eastern Time on November 2. This was $3.26, or 2.81%, lower than on the morning of the previous day, when the price stood at $115.86, Fortune reports.

At the same time, Brent rose by 5.39% over the month, from $106.84 per barrel. Over the year, its price increased by 71.20%: on November 2 last year, a barrel cost $65.77. The annual increase amounts to approximately $47 per barrel.

What determines the price of oil

Oil prices change under the influence of supply and demand, as well as news about their possible dynamics. Among the factors that can quickly affect the market, the publication names threats of an economic downturn, wars, and OPEC+ decisions.

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Quotes are updated continuously while futures markets are open. In these markets, participants enter into contracts to buy or sell oil in the future, so the price changes along with the course of trading.

How oil affects fuel prices

The cost of crude oil is a key component of the retail price of gasoline, although drivers also pay for refining, wholesale supplier services, taxes, and gas station markups. According to Fortune, raw materials usually account for more than half of the cost of a gallon of fuel. Higher oil quotes usually lead to higher prices at gas stations, while cheaper oil may be reflected there more slowly.

More expensive oil can also affect the cost of goods through energy and logistics expenses. Higher transportation costs, in particular, can affect the price of products delivered from warehouses and farms to stores.