Historical Crude Oil Prices (Chart)

This Chart presents Monthly Average Oil Prices.  See Annual Averages in Table Form .
 

The above chart shows oil prices adjusted for inflation in April 2008 dollars. As you can see current prices in real (inflation adjusted) terms fell from July 2006 until January 2007 but then rose sharply since January 2007.

The rise resulted in current prices being higher than the previous peak not only in nominal terms but also in inflation adjusted terms.

The previous peak price occurred back in 1979. At that time the monthly average oil price peaked at $38 per barrel (although the intraday prices spiked much higher). 

The common price quoted is for the all time  high of  Oil prices is the price that the highest barrel ever sold for. That price doesn't  really have any effect on the price consumers paid. What really matters is the average price the refineries had to pay for the whole month. Interestingly, the highest monthly average occurred in December 1979 while the highest annual high occurred in 1980.  Which means prices spiked higher in late 1979 and then dropped slightly but overall remained at higher levels throughout 1980.

Note that the prices we use are for Illinois Crude which will be similar but not exactly the same as the  NY Crude spot price.  Also note that during the 1970's Oil prices were subject to price controls except for "stripper" wells. These price controls resulted in shortages and lines at the gas station in addition to some shootings and even deaths due to people "cutting in the gas line".  We use the free market stripper prices which more accurately indicate what prices would have been without the artificial price controls. 

Adjusted for inflation in April 2008 dollars the 1979 $38 peak is the equivalent of paying $106.43 today. (Note: This number is constantly changing as we adjust for inflation at the current moment.)

In other words, as Oil moved above $106.43  we entered new high territory.  With prices for May in the high teens we are more than 10% above the previous record high!

For more information on how we got to this point in our Oil prices see the article Why Oil Prices haven't Crippled the US Economy Yet  or Oil Prices in Table Form.