Current price of oil as of August 18, 2026
When oil prices change, it affects your energy costs—and even the price of everyday items. Here’s why.
On August 18, 2026, the price of oil was $92.42 per barrel, according to the Brent benchmark. This represents a 0.97% increase from the previous day's opening price and a 4.38% rise compared to the same time last month. The price of oil had also surged 38.47% over the past year.
Many factors influence oil prices, but at its core, the market is driven by supply and demand dynamics. Geopolitical tensions, such as potential recessions or conflicts, can cause prices to fluctuate rapidly.
Gas prices at the pump are influenced by more than just crude oil costs. They also include refining, wholesaling, taxes, and the markup charged by local gas stations. However, crude oil typically accounts for more than half of the total cost per gallon of gasoline.
The U.S. Strategic Petroleum Reserve serves as a backup supply of crude oil, intended to protect energy security in times of crisis. It can help mitigate the impact of supply shocks and maintain essential economic activities.
Oil prices and natural gas prices are interconnected. A significant change in oil prices can have ripple effects on natural gas markets. For instance, higher oil prices might lead some industries to switch to natural gas, increasing demand for the latter.
Brent crude oil, which represents global oil performance, and West Texas Intermediate (WTI) for North America, are the two main benchmarks for oil prices. Brent reflects a larger share of the world's traded crude and is widely used to track historical trends in oil prices.
Over the decades, oil prices have experienced dramatic fluctuations due to various factors, including geopolitical events, economic recessions, and supply imbalances. For example, the early 1970s saw an oil shock following the Middle East embargo during the Yom Kippur War, while a mid-1980s drop in demand and increased non-OPEC production led to falling prices.
The 2008 global financial crisis also caused a steep decline in oil prices, while the COVID-19 pandemic in 2020 led to unprecedented low demand and oil prices below $20 per barrel.
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