President Donald Trump recently made headlines for pulling out of the Iran nuclear deal. Speculation about what would happen to the oil market ensued. And one of the big things people wanted to know is if it will impact what they pay at the pump.
Gasoline prices did jump after Trump's announcement. But it's not just world affairs moving the oil markets.
If you're in the world of oil, monitoring the ebbs and flows of crude prices is second nature. Most investors follow either Brent crude or WTI. Brent crude refers to oil from certain oil fields in the North Sea in Northern Europe, and it's used as an international benchmark for oil prices. West Texas Intermediate (WTI) is one type of light crude that comes from the U.S. and serves as a domestic benchmark for U.S. oil prices.
If you're not an oil analyst, it may seem like a lot to keep up with. But regardless of which of those contracts you follow — the gist is the same for both.
Oil prices are influenced by three major factors: supply, demand and geopolitics.