Current price of oil as of August 28, 2026

As of August 28, 2026, the price of oil per barrel stood at $90.55, marking an increase of 87 cents from the previous day's morning price. This represents a significant rise of $22.34 compared to the price one year ago, which was $68.21. The benchmark for oil prices, known as Brent crude oil, is often used as a global oil performance indicator due to its widespread representation of traded crude oil.

Oil prices are highly volatile and influenced by a multitude of factors, including geopolitical tensions, economic recessions, and shifts in supply and demand. The U.S. Strategic Petroleum Reserve, a significant stockpile of crude oil held for emergency use, can help mitigate the impact of sudden price hikes during supply disruptions. However, this reserve is primarily a short-term solution, designed to provide temporary relief and maintain essential services during crises.

Oil prices directly affect the cost of gasoline at the pump, with crude oil constituting a large portion of the final retail price. In addition to the cost of refining and transporting the fuel, taxes and local station markups also contribute to the overall price. A surge in oil prices generally leads to higher gas prices, though the lag in price adjustments can be described as "rockets and feathers."

Oil and natural gas are closely linked, with changes in one often leading to shifts in the other. For instance, when oil prices rise, some industries may opt to replace some natural gas usage in their operations, thereby increasing the demand for natural gas. Historically, oil prices have been anything but stable, experiencing volatility due to wars, supply cuts, global recessions, and oversupplies—or "gluts."

The Brent benchmark, which closely represents global oil prices, has seen such dramatic fluctuations over the decades, from the 1970s oil shock to the 2008 financial crisis and the 2020 COVID lockdown.

The U.S. shale oil production has also played a role in shaping the current oil price landscape. As shale deposits become more accessible, the increased supply can help prevent drastic price spikes, providing a buffer against sudden increases in oil costs. This, in turn, can have a ripple effect on inflation and the broader economy, as higher oil prices can translate to increased costs for various everyday goods and services.