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- Caroline Mercer via Fortune | FORTUNE
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- Business·5 min to read
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Oil price rises to $89.68 per barrel, up 32% from a year ago
ReOil price rises to $89.68 per barrel, up 32% from a year ago
Brent crude reached $89.68 per barrel on August 27, 2026, up $2.27 from the previous day and about $21.90 above its price a year earlier. The increase reflects ongoing supply concerns and geopolitical tensions affecting global energy markets.
Oil prices climbed sharply on August 27, 2026, with Brent crude reaching $89.68 per barrel by 7:15 a.m. Eastern Time. That marks an increase of $2.27 from the previous morning and puts the benchmark roughly $21.90 above its level from a year earlier, when a barrel cost $67.80.
The latest reading represents a 2.59% gain from yesterday's close of $87.41. Despite the recent uptick, prices remain below the $92.90 level recorded one month ago, reflecting the volatile conditions that have defined the oil market over the past year. On an annual basis, Brent crude is up 32.27%.
Oil prices are inherently unpredictable, driven primarily by the basic forces of supply and demand. However, sudden swings often occur during periods of heightened concern about recession, war, or other major disruptions to global energy flows. Geopolitical tensions, particularly around key shipping routes and production regions, continue to exert upward pressure on prices.
The movement in crude prices typically translates to changes at the gas pump, though not always immediately. Each gallon of gasoline bundles together several costs: crude oil, refining expenses, wholesale distribution, government taxes, and station markups. Because crude oil usually accounts for more than half of the price per gallon, it tends to have the largest influence on what drivers pay. Sharp increases in oil almost always show up quickly at the pump, while declines often translate into slower, more delayed drops in gas prices, a phenomenon sometimes called the "rockets and feathers" effect.
For consumers, higher oil prices ripple through the broader economy. When oil is expensive, everyday items tend to cost more, both because of direct energy costs like heating and gas utilities and because of the logistics involved in getting products to market. Shipping expenses, for example, can affect grocery store prices as it becomes more expensive to move goods from warehouses and farms onto shelves.
The U.S. maintains the Strategic Petroleum Reserve as a safety net for emergencies such as sanctions, severe storm damage, or war. The reserve can help take the edge off brutal price spikes when supply gets hit, but it is not a long-term solution. It serves more as an immediate buffer to support consumers and keep crucial sectors of the economy running, including key industries, emergency services, and public transportation.
Oil and natural gas prices are also linked. A significant change in oil prices can affect natural gas markets, as some industries may substitute one fuel for the other where possible. If oil prices increase, demand for natural gas can rise as businesses seek alternatives.
Looking at historical performance, the oil market has been anything but stable. The early 1970s saw the first major oil shock when Middle East producers slashed exports and placed an embargo on the U.S. and others during the Yom Kippur War. Prices fell in the mid-1980s due to lower demand and the entry of more non-OPEC producers. Prices jumped again in 2008 with increased global demand, then plunged alongside the global financial crisis. During the 2020 COVID lockdowns, oil demand collapsed, bringing prices below $20 per barrel.
Brent crude serves as the main global oil benchmark, while West Texas Intermediate is the primary benchmark for North America. Between the two, Brent offers a clearer view of global oil performance because it prices much of the world's traded crude. The U.S. Energy Information Administration now uses Brent as its primary reference in its Annual Energy Outlook.
Several factors influence where prices go from here. In the U.S., prices also move based on how friendly an administration is to drilling, as it can affect future supply. Domestic shale production plays a role as well: the more shale the U.S. accesses, the more energy supply becomes available, which can help keep prices from spiking as much.
