Economy 3 min read By Alice Ashford
Brent crude falls to $112.60 a barrel, down $3.26 in a day
Brent crude traded at $112.60 a barrel on the morning of November 2, 2026, down from the previous day but roughly $47 higher than a year earlier. Oil prices are driven mainly by supply and demand, and their moves feed directly into petrol prices.
Brent crude, the main global oil benchmark, was trading at $112.60 a barrel at 6:30 a.m. Eastern Time on November 2, 2026. That is $3.26 lower than the same time the previous day, a fall of about 2.81 per cent, but roughly $47 higher than a year earlier. Against a month earlier, when the price stood at $106.84, the benchmark has risen by about 5.39 per cent.
Forecasting the direction of oil is notoriously difficult. The price is ultimately set by supply and demand, and the balance can shift quickly when fears of an economic downturn, war or other disruption intensify. Geopolitical developments, decisions by the OPEC+ producer group and the policy stance of national governments on drilling can all influence the outlook for future supply.
The movement matters at the petrol pump. Crude oil typically accounts for more than half the price of a gallon of petrol, with refining, wholesaling, taxes and local station margins making up the rest. When crude prices spike, pump prices follow quickly. When they fall, petrol prices tend to drift down more slowly, a pattern often described as “rockets and feathers”.
Governments can also intervene in supply shocks. The United States holds a store of crude oil known as the Strategic Petroleum Reserve, whose main purpose is energy security in the event of sanctions, severe storm damage or conflict. It can also ease sharp price rises by providing short-term relief for consumers and for critical sectors such as emergency services and public transport, though it is not a long-term solution.
Oil and natural gas are closely linked. When oil becomes more expensive, some industries may switch to natural gas where possible, which raises demand for gas. Higher energy costs also feed into the wider economy: expensive oil can push up the price of everyday goods, both through energy bills for heating and fuel and through transport and logistics costs that reach supermarket shelves.
Oil has a history of volatile swings. The early 1970s brought the first major oil shock, when Middle Eastern producers cut exports and imposed an embargo on the United States and others during the Yom Kippur War. Prices fell in the mid-1980s amid weaker demand and more non-OPEC producers entering the market. They spiked again in 2008 before plunging with the global financial crisis, and during the COVID-19 lockdowns in 2020 demand collapsed, pushing prices below $20 a barrel.
Analysts note that the price of oil updates continuously while futures markets are open, as contracts for future delivery are traded. Shale production in the United States also shapes the outlook, since greater domestic supply can help limit price spikes. In 2025, the Trump administration moved to reopen more than 1.5 million acres of the Coastal Plain of the Arctic National Wildlife Refuge to oil and gas leasing, reversing a Biden-era policy that had restricted Arctic drilling.
Source: fortune.com
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