Oil falls to $84.62 a barrel as Brent retreats from May level

Oil traded at $84.62 a barrel at 9 a.m. Eastern on June 15, according to Fortune, using Brent crude as the benchmark. The price matters for households and businesses because crude oil remains a major driver of gasoline, shipping and broader energy costs.

Fortune reported that Brent was down 67 cents from the previous day’s $85.29, a 0.78% decline. The benchmark was also far below its level a month earlier, when Fortune listed it at $109.21, but it remained $8.63 above its price from a year earlier.

On a percentage basis, Fortune put the one-month drop at 22.51% and the year-over-year gain at 11.35%. The same data showed Brent at $75.99 a barrel one year earlier.

What is moving oil

Fortune said oil prices cannot be predicted with certainty because they respond to supply and demand, as well as expectations about future supply and demand. The publication cited economic weakness, war and other disruptions as forces that can quickly change the direction of crude prices.

Fortune also pointed to a new Middle East peace deal as a factor behind the latest move, saying the agreement appeared to be holding and that oil prices had fallen over the weekend. The report did not give a separate estimate of how much of the decline was tied to that development.

Fortune said oil futures prices change continuously while futures markets are open. It described those markets as venues where buyers and sellers agree on future oil transactions, with prices moving as contracts trade.

Why crude affects gasoline

Fortune reported that gasoline prices reflect more than crude oil, including refining, wholesale distribution, taxes and retail station markups. Even so, the publication said crude usually accounts for more than half the retail price of a gallon of gasoline.

That relationship means a jump in oil often feeds into higher pump prices, according to Fortune. The publication also noted that gasoline prices often decline more slowly after oil prices fall, a pattern sometimes described as “rockets and feathers.”

Benchmarks and reserves

Fortune identified Brent crude as the leading global oil benchmark and West Texas Intermediate as the main North American benchmark. It said Brent is often used to track global oil performance because it prices much of the world’s traded crude.

Fortune also noted that the U.S. Energy Information Administration uses Brent as its primary reference in its Annual Energy Outlook. The report said the U.S. Strategic Petroleum Reserve is intended for energy security during emergencies such as sanctions, severe storm damage or war, and can help soften price spikes during supply shocks.

According to Fortune, the reserve is not a long-term fix for high oil prices. The publication described it as a tool for immediate relief that can help consumers and keep essential parts of the economy operating during disruptions.

Longer-term volatility

Fortune said Brent’s history shows sharp price swings tied to wars, recessions, supply cuts, oversupply and policy shifts. It cited the 1970s oil shock during the Yom Kippur War, the mid-1980s price drop, the 2008 spike and subsequent fall during the financial crisis, and the 2020 pandemic collapse that sent prices below $20 a barrel.

Fortune also said oil and natural gas prices can influence each other because both are major energy fuels. If oil prices rise, the publication said, some industries may use more natural gas where possible, increasing demand for that fuel.

This story draws on original reporting from Fortune.