From The Conversation · Brian C. Black · · 1m 10s
Oil Market That Sets Gas Prices Began in Western Pennsylvania
Western Pennsylvania's oil exchange created the market that now sets gas prices across the U.S.
In brief
Western Pennsylvania's oil exchange created the market that now sets gas prices across the U.S. The Oil City Oil Exchange, founded in 1874, established the oil market that determines today's gas prices. Originally reported by The Conversation.
Oil Market Origins
The Oil City Oil Exchange set crude oil prices for the nation during the late 19th century.
Early Oil Trading
Oil men traded crude oil on streets before formal exchanges existed.
First Oil Exchange
In 1859, Edwin Drake struck oil near Titusville, Pennsylvania, funding the first oil deals.
Oil Exchange Building
The Oil City Oil Exchange opened in April 1878 at the corner of Center and Seneca streets.
Price Setting
Brokers collected 10 cents per barrel from buyers and 5 cents from sellers.
Market Control
Standard Oil cornered the market by 1895, controlling prices until 1911.
Modern Oil Prices
Today, gas prices follow oil prices set by traders on New York Mercantile Exchange and Intercontinental Exchange.
Iran War Impact
Iranian airstrikes on Feb 28, 2026, closed the Strait of Hormuz, raising global oil prices.
In short
The Oil City Oil Exchange, founded in 1874, established the oil market that determines today's gas prices.
