WTI and Brent crude oil price in dollar per barrel, today 27 October: how much does it cost and how much is it quoted?
Crude oil prices are increasing but are still lower than they were a month ago. What does this mean for electricity and utility costs for consumers?
In the United States two of the most tracked petroleum fuel grades and their prices are WTI Crude and Brent Crude.
Today, WTI Crude spot price clocked it at $89.12, up 1.33% from yesterday, with Brent Crude valued a bit higher at $96.62, only increasing 0.97%.
To bring costs down even further, the Biden Administration has announced plans to withdraw and additional fifteen million barrels of petroleum from the National Strategic Reserves. Since last year, the nation’s reserve have fallen from 614.2 million barrels to 401.7 million barrels over the last year. If US oil and gas companies are able to bring the WTI Crude price down to around $70 a barrel the federal government has said that it will purchase enough to replenish the national stockpile.
Why are gas prices so much higher in California?
Gas prices tend to stay higher in California because the state has higher fuel standards that require special refining characteristics, which means that supply is not often available from other oil producing states.
Additionally, the oil infrastructure network that delivers petroleum around the country is disconnected from the Golden State which can create greater price fluctuations in cases where supply falls.
The US Energy Information Administration has reported that the state’s inventories fell below their five year average (2017-2021) in August and September, which has contributed to drivers paying more at the pump this month.
Some in government are also calling attention to the ways corporate price gauging has contributed to the price crisis. Gov. Gavin Newsom has called on the state legislature to pass a windfall tax on corporate profits that go over and above what has been seen in previous years. The increased revenue that the state takes in will be returned to the taxpayers in the form of a direct payment to help alleviate the financial stress caused by soaring energy prices.