How much does a barrel of oil cost today

In the United States two of the most tracked petroleum fuel grades and their prices are WTI Crude and Brent Crude.

Today, WTI Crude spot price clocked it at $89.12, up 1.33% from yesterday, with Brent Crude valued a bit higher at $96.62, only increasing 0.97%.

To bring costs down even further, the Biden Administration has announced plans to withdraw and additional fifteen million barrels of petroleum from the National Strategic Reserves. Since last year, the nation’s reserve have fallen from 614.2 million barrels to 401.7 million barrels over the last year. If US oil and gas companies are able to bring the WTI Crude price down to around $70 a barrel the federal government has said that it will purchase enough to replenish the national stockpile.

Why are gas prices so much higher in California?

Gas prices tend to stay higher in California because the state has higher fuel standards that require special refining characteristics, which means that supply is not often available from other oil producing states.

Additionally, the oil infrastructure network that delivers petroleum around the country is disconnected from the Golden State which can create greater price fluctuations in cases where supply falls.

The US Energy Information Administration has reported that the state’s inventories fell below their five year average (2017-2021) in August and September, which has contributed to drivers paying more at the pump this month.

Some in government are also calling attention to the ways corporate price gauging has contributed to the price crisis. Gov. Gavin Newsom has called on the state legislature to pass a windfall tax on corporate profits that go over and above what has been seen in previous years. The increased revenue that the state takes in will be returned to the taxpayers in the form of a direct payment to help alleviate the financial stress caused by soaring energy prices.

The Average Crude Oil Spot Price calculates an equally weighted price of the WTI Crude Oil Price, Brent Crude Oil Price, and Dubai Crude Oil Price. This metric gives a nice overview of the broad crude oil market, rather than looking at one type of crude oil price alone. One of the most notable times for the Average Crude Oil Spot Price was in 2008. Prices for the Average Crude reached as high as $114/barrel because of large cuts in production. However, because of the financial crisis and an abrupt loss of demand for oil globally, the price of Average Crude fell as much at 70% off highs in January of 2009.

Average Crude Oil Spot Price is at a current level of 90.33, up from 88.22 last month and up from 82.06 one year ago. This is a change of 2.39% from last month and 10.07% from one year ago.

The average annual price of Brent crude oil climbed to 103.71 U.S. dollars per barrel as of October 2022. This is over 30 U.S. dollars higher than the annual average in 2021 and comes in the wake of an energy supply shortage that began gripping Europe in late 2021, as well as concerns over oil supply bottlenecks following the Russia-Ukraine war. Brent is the world's leading price benchmark for Atlantic basin crude oils. Crude oil is one of the most closely observed commodity prices as it influences costs across all stages of the production process and consequently alters the price of consumer goods as well.

What determines crude oil benchmarks?

In the past decade, crude oil prices have been especially volatile. Their inherent inelasticity regarding short-term changes in demand and supply mean that oil prices are erratic by nature. However, since the 2009 financial crisis, many commercial developments have greatly contributed to price volatility; such as economic growth by BRIC countries like China and India, and the advent of hydraulic fracturing and horizontal drilling in the U.S. The outbreak of the coronavirus pandemic and the Russia-Ukraine war are examples of geopolitical events dictating prices.

Light crude oils - Brent and WTI

Brent Crude is considered a classification of sweet light crude oil and acts as a benchmark price for oil around the world. It is considered a sweet light crude oil due to its low sulfur content and a low density and may be easily refined into gasoline. This oil originates in the North Sea and is comprised of several different oil blends including Brent Blend and Ekofisk crude. Often, this crude oil is refined in Northwest Europe.

Another sweet light oil often referenced alongside UK Brent is West Texas Intermediate (WTI). WTI oil prices totaled 67.99 U.S. dollars per barrel in 2021.

What is the price of a barrel of oil in 2022?

What happens if oil hits $200 a barrel?