Oil Prices, Explained

Oil prices move when supply, demand, inventories, shipping routes, refinery needs and geopolitical risk change what buyers will pay for the next barrel.

1. Frame 1Oil prices move on a market price board while buyers need barrels and producers, inventories and shipping routes limit supply.
2. Frame 2Supply chain: wells, OPEC quotas, spare capacity and tankers meet refinery demand for crude needed today.
3. Frame 3Benchmark map: Brent and WTI split when geography, pipeline space, storage and refinery needs change which barrel is reachable.
4. Frame 4Inventory meter: low tanks make wars, sanctions, storms or blocked sea lanes raise prices faster.
5. Frame 5Refinery flow: crude turns into gasoline, diesel and jet fuel, then margins and taxes shape pump prices.
6. Frame 6Watch signal: EIA stocks, refinery runs, spare capacity, tanker routes, futures curves and whether risk removes real supply.