Oil Price Drops to $91.60 Per Barrel

As of 6:35 a.m. Eastern Time on August 12, 2026, the price of oil is $91.60 per barrel, utilizing Brent crude as the benchmark. This price represents a decrease of 94 cents compared to the same time yesterday morning. Year-over-year, the current oil price is approximately $25 higher than it was on August 12, 2025. Looking at shorter timeframes, the price of oil was $92.54 per barrel yesterday, reflecting a 1.01% decrease. One month prior, on July 12, 2026, oil was priced at $76.56 per barrel, indicating a substantial increase of 19.64% over that period. The price on August 12, 2025, was $66.52 per barrel, meaning the current price is 37.70% higher than a year ago.

The future trajectory of oil prices remains uncertain, as numerous factors influence its trading. Supply and demand are identified as the primary drivers. Geopolitical events, such as fears of economic slowdowns or conflicts, can lead to sharp fluctuations in oil prices. The relationship between crude oil prices and gasoline prices at the pump is multifaceted. The retail price of gasoline incorporates costs beyond crude oil, including refining, distribution, taxes, and retailer margins. However, crude oil remains the most significant component, typically accounting for over half of the cost per gallon. Increases in oil prices generally translate to rapid rises in gasoline prices. Conversely, when oil prices fall, gasoline prices tend to decrease more gradually, a phenomenon often described as "rockets and feathers."

The United States maintains a stockpile of crude oil known as the Strategic Petroleum Reserve (SPR). This reserve serves as a critical tool for energy security, intended for use during emergencies such as natural disasters (like severe storms), sanctions, or wartime disruptions to supply. The SPR's primary function is to provide immediate support to consumers and ensure the continued operation of essential economic sectors, including key industries, emergency services, and public transportation, when supply is suddenly interrupted. It is designed as a short-term measure rather than a permanent solution to price volatility.

Oil and natural gas are both fundamental energy sources, and their prices are interconnected. Significant shifts in oil prices can indirectly impact natural gas prices. If oil prices experience a substantial change, it can create a ripple effect through the energy market, influencing the cost and availability of natural gas.