Brent Crude Slips to $97.65 a Barrel on Morning Trade

Brent crude was trading at $97.65 per barrel on the morning of November 9, according to data as of 7:30 a.m. Eastern Time. This is $2.66 below the previous day's price of $100.31. Brent serves as a global benchmark for oil pricing, and its movements are directly reflected in the cost of fuel and consumer goods.

Over the month, the price fell by approximately 8.68 percent, from $106.94 per barrel. However, compared with the same date last year, oil has risen by roughly 52 percent: at that time, a barrel cost $64.15. Thus, the short-term decline does not cancel out the significant price increase over the year, and the market remains sensitive to fluctuations.

Oil prices change during trading hours as the futures market operates. Their dynamics are influenced by the balance of supply and demand, the geopolitical situation, and OPEC+ decisions. A separate factor in assessing future supply is the 2025 decision to revise leases of plots in the Arctic National Wildlife Refuge. Growth in U.S. shale oil production adds supply to the market and can smooth out sharp price spikes.

Retail gasoline prices react to changes in the cost of crude oil with a delay. In professional circles, this phenomenon is called the "rockets and feathers" effect: increases in pump prices come quickly, while decreases come slowly. Crude oil usually accounts for more than half of the cost of a gallon of gasoline at the pump, so fluctuations in the global market are not felt by drivers immediately or in full.

Oil and natural gas prices are also interconnected. When gas becomes more expensive, some consumers and businesses switch to oil products, which increases demand for gasoline and fuel. This interdependence means that events in one energy market quickly carry over to another, affecting the overall picture of energy costs.

The high cost of oil also affects the economy as a whole. It raises the costs of freight transport and food, which contributes to inflation and reduces household purchasing power. To cushion short-term shocks during supply disruptions, the Strategic Petroleum Reserve may be used, giving the U.S. government a tool for rapid response, although its effect is temporary.

The North American benchmark is the WTI grade, but the U.S. Energy Information Administration bases its forecasts primarily on Brent. This reflects Brent's status as the global standard, against which contracts are calculated and oil is priced in various regions of the world.

Market history shows how sharp fluctuations can be. The 1970s embargo, the supply glut of the 1980s, the price peak and subsequent collapse of 2008, and the drop in demand during the COVID-19 pandemic in 2020, when prices fell below $20 per barrel, demonstrate the market's high sensitivity to external events. The direction of future price movements is considered difficult to predict, as it depends on a combination of demand, supply, and political decisions.

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Derek Weston

Sports Writer

Derek Weston covers public affairs, politics, business, culture and daily news for Core Memo. The role focuses on verification, context, and clear explanations for readers.

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