Brent oil trades at $74.02 a barrel in June 25 snapshot

Brent crude was priced at $74.02 a barrel at 8:45 a.m. Eastern on June 25, according to Fortune. The benchmark matters for consumers because crude oil is a major input in gasoline prices and can feed into broader costs across the economy.

Fortune reported that the morning price was lower than the prior day and higher than a year earlier. Its market table listed Brent at $75.57 the previous day, $99.46 one month earlier and $67.78 a year earlier.

Those figures put the benchmark down 2.05% from the prior day, down 25.57% from a month earlier and up 9.20% from the same point last year, according to Fortune’s data.

Why oil prices move

Fortune said oil pricing is driven mainly by supply and demand, with markets reacting to expectations about future supply and demand as well as current conditions. The publication cited geopolitics, decisions by OPEC+ and the stance of U.S. administrations toward drilling as factors that can affect prices.

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. The move reversed a Biden administration policy that limited Arctic drilling, according to Fortune.

Oil prices change throughout trading hours when futures markets are open, Fortune said. In those markets, buyers and sellers trade contracts tied to future delivery, so the quoted price can shift as trading continues.

What it means for gas and inflation

Fortune said a gallon of gasoline reflects more than the cost of crude. Refining, wholesale distribution, government taxes and gas station markups also contribute to pump prices.

Crude oil usually accounts for more than half of the per-gallon price, according to Fortune. The publication said higher oil prices tend to reach gas stations quickly, while lower oil prices often take longer to show up for drivers.

Fortune also said expensive oil can push up household energy bills and the cost of goods that depend on transport. Shipping costs can affect prices for groceries and other items as products move from farms and warehouses to store shelves, according to the publication.

Benchmarks and reserves

Fortune identified Brent crude as the main global oil benchmark and West Texas Intermediate as the primary North American benchmark. The U.S. Energy Information Administration now uses Brent as its main reference in its Annual Energy Outlook, according to Fortune.

The U.S. Strategic Petroleum Reserve is intended to support energy security during emergencies such as sanctions, severe storm damage or war, Fortune said. The reserve can also help cushion consumers during sharp supply-driven price increases, but Fortune described it as a short-term tool rather than a lasting fix.

Fortune said oil and natural gas prices can affect one another because both fuels are widely used. If oil prices rise, some industries may use natural gas where they can, increasing demand for that fuel, according to the publication.

Oil’s longer record

Fortune said Brent’s history includes sharp increases tied to wars and supply cuts, as well as steep declines linked to recessions and excess supply. The publication cited the early 1970s oil shock during the Yom Kippur War, the mid-1980s price decline, the 2008 rise and crash around the global financial crisis, and the 2020 pandemic-era demand collapse, when prices fell below $20 a barrel.

This story draws on original reporting from Fortune.