Oil reached $89.68 per barrel using the Brent benchmark on August 27, 2026, up $2.27 from the previous morning and $21.90 higher than a year ago. Since crude oil typically accounts for more than half of the price per gallon at the pump, price increases are quickly passed on to consumers, while decreases tend to be slower, creating a « rockets and feathers » effect. The U.S. Strategic Petroleum Reserve serves as an immediate safety net during major supply disruptions. Oil and natural gas prices are linked, as higher oil prices can increase demand for natural gas as industries seek substitutes. Oil prices fundamentally depend on supply and demand and are highly volatile due to geopolitical tensions, OPEC+ decisions, and economic recessions.
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