Steve Ballmer Explains The Cost of Oil

Oil prices are determined through global markets where buyers and sellers trade contracts on exchanges like NYMEX and ICE, establishing benchmark prices (WTI and Brent Crude) that affect worldwide fuel costs; despite the US being a major oil producer, it both imports and exports petroleum because not all oil is the same and refineries are designed for specific crude types, making the US vulnerable to global supply disruptions like those in the Strait of Hormuz, which handles about 20 million barrels daily (one-fifth of global consumption) and can impact gas prices anywhere in the world.