Brent oil drops to $79.25 a barrel after sharp monthly slide
Fortune reported Brent crude was down 3.88% from the prior day and 25.41% from a month earlier as of Monday morning.
By Daniel Okafor · Business Editor
3 min read
Brent crude traded at $79.25 a barrel at 8:45 a.m. Eastern on Monday, June 22, according to Fortune. The move matters for consumers because Fortune said crude oil is typically the largest component of retail gasoline prices and can also feed into broader costs through energy and shipping.
Fortune reported that the benchmark price was $3.20 below the previous day’s level of $82.45, a decline of 3.88%. Compared with one month earlier, when oil stood at $106.25 a barrel, the price was down 25.41%, according to Fortune’s figures.
The year-over-year move was far smaller. Fortune reported that Brent was 59 cents higher than the $78.66 price recorded a year earlier, a gain of 0.75%.
Supply, demand and policy risks
Fortune said oil prices cannot be forecast with certainty and are driven mainly by supply and demand. The publication cited economic weakness, war and other threats as factors that can quickly shift the direction of the market.
Fortune also said prices can respond to expectations about future supply and demand, including geopolitics and decisions by OPEC+. In the U.S., Fortune said federal policy toward drilling can affect expectations for future supply.
As an example, Fortune pointed to 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. Fortune said that action reversed Biden administration limits on Arctic drilling.
What oil means for gasoline and inflation
Drivers do not pay only for crude when buying gasoline, Fortune said. The retail price also reflects refining, wholesale distribution, taxes and gas station markups.
Even so, Fortune said crude oil usually represents more than half the cost of a gallon of gasoline. The publication said gasoline prices tend to rise when crude climbs, while pump prices often fall more slowly after crude declines, a pattern sometimes called “rockets and feathers.”
Fortune said higher oil prices can also raise costs across the economy. The publication cited household energy expenses and the cost of moving goods, including the transportation involved in getting grocery items from farms and warehouses to store shelves.
Benchmarks and reserves
Fortune used Brent crude as its benchmark for the current price, describing it as the main global measure for oil. The publication identified West Texas Intermediate, or WTI, as the main North American benchmark.
Fortune said Brent is often used to track longer-term oil performance because it prices much of the crude traded worldwide. The publication also said the U.S. Energy Information Administration now uses Brent as its primary reference in the Annual Energy Outlook.
Fortune also described the U.S. Strategic Petroleum Reserve as an emergency stockpile intended for energy security during crises such as sanctions, storm damage or war. The publication said the reserve can help cushion severe price spikes during supply shocks, though it is not a long-term fix.
Oil’s uneven history
Fortune said oil prices have swung over decades because of wars, recessions, supply cuts, oversupply, OPEC decisions and energy policy shifts. It cited the early 1970s embargo during the Yom Kippur War as one major shock.
The publication also cited a mid-1980s decline tied to weaker demand and more non-OPEC production, a 2008 spike followed by a drop during the global financial crisis, and the 2020 COVID lockdown period, when demand collapsed and prices fell below $20 a barrel.
This story draws on original reporting from Fortune.