From manufacturing and transportation to agriculture and construction, several industries rely on fuel to keep their fleets running. Whether you run a small business or a Fortune 500 company, oil prices can impact your bottom line. Understand how oil prices are structured so you can make informed decisions that keep your tanks full and lower your operational costs.
What Are the Two Oil Prices?
The two primary benchmarks for oil prices are West Texas Intermediate (WTI) and Brent Crude:
- WTI is priced in Cushing, Oklahoma, relies on inland storage, and serves as the main benchmark for the U.S.
- Brent Crude is sourced from the North Sea in Europe, is waterborne, and serves as an international benchmark for global oil prices.
How Does Oil Pricing Work?
Several factors influence oil pricing, including:
- Inventory levels: Weekly reports provide crucial, real-time data on crude oil stockpiles.
- Supply and demand: Prices generally rise when the demand exceeds the supply, or the prices fall during a surplus.Β
- Economic growth: Strong global economic activity can increase energy consumption and boost oil demand.
- Geopolitical factors: Instability, sanctions, and wars in oil-producing regions can create supply anxieties that drive prices up.
- Technological advances: Improvements in drilling, such as hydraulic fracturing, can significantly increase supply and lower prices.
- United States dollar exchange rates: A weaker U.S. dollar can make oil cheaper for foreign buyers, which often drives up demand and prices.
- Market speculation and trading: Speculators and hedgers may cause high-volume trading, which can cause prices to fluctuate rapidly.
- Policies from industry leaders: Decisions by the Organization of the Petroleum Exporting Countries (OPEC) to increase or cut production can directly influence global supply.
- Natural disasters or weather conditions: Extreme temperatures, storms, or hurricanes can disrupt production, damage refineries, or spike demand for heating oil.
Why Are Oil Prices Increasing?
Prior to 2011, WTI and Brent Crude prices moved in tandem. Since then, the U.S. has experienced a Shale Revolution with new horizontal drilling and fracturing techniques in the Permian Basin and North Dakota. As production surged to record levels, the U.S. became a leading global producer, and oversupply led to lower prices.
In 2026, geopolitical conflicts between the U.S. and Iran have made oil prices reach nearly a six-month high. Conflicts stemming from the Russian-Ukrainian War continue to drive Brent Crude prices higher. Despite these surges, some analysts predict that oil prices will decline as global production from countries like Guyana, Brazil, and Canada increases.
See How Much You Can Save With SC Fuels
When your company needs fuel deliveries at competitive prices, SC Fuels is ready to provide your solution. Originally founded in 1930, our company is one of the oldest and largest petroleum distributors in the U.S. We proudly serve businesses across various industries, from transportation and manufacturing to construction and agriculture. We are your single source distributor of fuel products, including gasoline, diesel, and alternative fuels.
We stay current with the market’s fluctuating conditions, including daily or intra-day market volatility and supply availability. We research how prices are influenced by factors such as seasonal demand shifts and refinery production costs.
Call (888) SCFUELS or contact our team to learn more and discuss your oil delivery needs.
