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Economy
Term 189 of 800
1 min readTwo voicesEconomy

Crude Oil.

Crude oil is unrefined petroleum pumped from the ground, the raw input that refineries turn into gasoline, diesel, and other fuels.
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Crude Oil
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In plain English

Crude oil is the raw, unprocessed petroleum that comes out of the ground before it is refined into usable fuels. Its price is set on global markets and quoted per barrel, and it swings with supply, demand, and geopolitics. Because it is the starting material for gasoline, diesel, jet fuel, and much more, its price ripples through the whole economy, from what you pay at the pump to shipping and airfare. Two benchmarks dominate the headlines: WTI in the US and Brent internationally.

Most useful ages
20 to 70

01Why it matters

Crude oil sits at the base of energy and transport costs, so its price feeds into gas, groceries, and inflation far beyond the oil market itself.

02The math, step by step

When crude rises from 70 to 90 dollars a barrel, refiners pay more for their raw material, and within weeks that usually shows up as higher prices at the gas pump.

03What this is NOT

Do not confuse with Gasoline

Crude oil is NOT gasoline. Crude is the raw input; gasoline is one of the refined products made from it, and their prices can move apart because of refining and taxes.

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Last reviewed July 12, 2026 · Reviewer Joseph Citizen, Founder