Brent crude slips to $71.53 a barrel in July 2 trading

Brent crude traded at $71.53 a barrel at 9:40 a.m. Eastern on July 2, Fortune reported, putting the global benchmark below its prior-day level. The price matters for consumers because Fortune said crude oil is typically the largest single component of retail gasoline prices and can affect broader costs through energy and shipping.

The July 2 Brent price was $1.15 lower than the $72.68 recorded the previous morning, a decline of 1.58%, according to Fortune. Compared with one month earlier, when Fortune listed Brent at $98.48, the benchmark was down 27.36%.

Fortune reported that oil remained slightly higher than a year ago. The July 2 price was $1.29 above the $70.24 level from the same point last year, a gain of 1.83%.

What can move oil prices

Fortune said oil prices can change quickly because the market responds to supply and demand as well as expectations about future supply and demand. The publication identified geopolitics, OPEC+ decisions, recession fears, wars and other disruptions as factors that can affect trading.

In the United States, Fortune said policy toward drilling can also influence prices by shaping expectations for future supply. Fortune cited the Trump administration’s 2025 move to reopen more than 1.5 million acres in the Coastal Plain of the Arctic National Wildlife Refuge for oil and gas leasing, reversing a Biden administration policy that had limited Arctic drilling.

How crude reaches the pump

Fortune reported that a gallon of gasoline includes more than the cost of crude oil. Drivers also pay costs tied to refining, wholesale distribution, taxes and station-level markups, according to the publication.

Because crude oil often represents more than half the retail price of gasoline, Fortune said rising oil prices tend to show up quickly at the pump. Price declines can take longer to reach consumers, a pattern Fortune described as the “rockets and feathers” effect.

Fortune also linked oil prices to inflation pressures. When oil costs rise, heating, gas utilities and transportation can become more expensive, and shipping costs can feed into the price of goods such as groceries, the publication reported.

Benchmarks and reserves

Fortune said oil markets generally follow two main benchmarks: Brent crude, the leading global reference, and West Texas Intermediate, the main North American benchmark. Brent is often used to assess global oil trends because it prices much of the world’s traded crude, Fortune reported.

The U.S. Energy Information Administration now uses Brent as its main reference in its Annual Energy Outlook, Fortune reported. Fortune said Brent’s history has included sharp increases tied to wars and supply cuts, as well as steep drops linked to recessions and oversupply.

Fortune also described the U.S. Strategic Petroleum Reserve as an emergency crude stockpile meant to support energy security during events such as sanctions, severe storm damage or war. The reserve can soften sharp price spikes after supply shocks, but Fortune characterized it as a short-term safeguard rather than a long-term fix.

Oil and natural gas prices can also affect each other, Fortune reported. If oil becomes more expensive, some industries may switch certain operations to natural gas where they can, increasing demand for that fuel.

This story draws on original reporting from Fortune.