The 2025 annual OPEC oil price stood at 78.1 U.S. dollars per barrel, as of February. This would be lower than the 2024 average, which amounted to 79.86 U.S. dollars. The abbreviation OPEC stands for Organization of the Petroleum Exporting Countries and includes Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iraq, Iran, Kuwait, Libya, Nigeria, Saudi Arabia, Venezuela, and the United Arab Emirates. The aim of the OPEC is to coordinate the oil policies of its member states. It was founded in 1960 in Baghdad, Iraq. The OPEC Reference Basket The OPEC crude oil price is defined by the price of the so-called OPEC (Reference) basket. This basket is an average of prices of the various petroleum blends that are produced by the OPEC members. Some of these oil blends are, for example: Saharan Blend from Algeria, Basra Light from Iraq, Arab Light from Saudi Arabia, BCF 17 from Venezuela, et cetera. By increasing and decreasing its oil production, OPEC tries to keep the price between a given maxima and minima. Benchmark crude oil The OPEC basket is one of the most important benchmarks for crude oil prices worldwide. Other significant benchmarks are UK Brent, West Texas Intermediate (WTI), and Dubai Crude (Fateh). Because there are many types and grades of oil, such benchmarks are indispensable for referencing them on the global oil market. The 2024 fall in prices was the result of weakened demand outlooks, primarily from China.

Crude Oil decreased 2.12 USD/BBL or 2.95% since the beginning of 2025, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. Crude Oil - values, historical data, forecasts and news - updated on March of 2025.

On March 24, 2025, the Brent crude oil price stood at 73.05 U.S. dollars per barrel, compared to 69.11 U.S. dollars for WTI oil and 75.11 U.S. dollars for the OPEC basket. These were slight increases compared to the previous weeks, which had seen some of the lowest prices in four years.Europe's Brent crude oil, the U.S. WTI crude oil, and OPEC's basket are three of the most important benchmarks used by traders as reference for oil and gasoline prices. Lowest ever oil prices during coronavirus pandemic In 2020, the coronavirus pandemic resulted in crude oil prices hitting a major slump as oil demand drastically declined following lockdowns and travel restrictions. Initial outlooks and uncertainty surrounding the course of the pandemic brought about a disagreement between two of the largest oil producers, Russia and Saudi Arabia, in early March. Bilateral talks between global oil producers ended in agreement on April 13th, with promises to cut petroleum output and hopes rising that these might help stabilize the oil price in the coming weeks. However, with storage facilities and oil tankers quickly filling up, fears grew over where to store excess oil, leading to benchmark prices seeing record negative prices between April 20 and April 22, 2020. How crude oil prices are determined As with most commodities, crude oil prices are impacted by supply and demand, as well as inventories and market sentiment. However, as oil is most often traded in future contracts (whereby a contract is agreed upon, while the product delivery will follow in the next two to three months), market speculation is one of the principal determinants for oil prices. Traders make conclusions on how production output and consumer demand will likely develop over the coming months, leaving room for uncertainty. Spot prices differ from futures in so far as they reflect the current market price of a commodity.

The 2025 preliminary average annual price of West Texas Intermediate crude oil reached 73.64 U.S. dollars per barrel, as of February. This would be lower than the 2024 average, which stood at 73.64 U.S. dollars per barrel. WTI and other benchmarks WTI is a grade of crude oil also known as “Texas light sweet.” It is measured to have an API gravity of around 39.6 and specific gravity of about 0.83, which is considered “light” relative to other crude oils. This oil also contains roughly 0.24 percent sulfur, and is therefore named “sweet.” Crude oils are some of the most closely observed commodity prices in the world. WTI is the underlying commodity of the Chicago Mercantile Exchange’s oil futures contracts. The price of other crude oils, such as UK Brent crude oil, the OPEC crude oil basket, and Dubai Fateh oil, can be compared to that of WTI crude oil. Since 1976, the price of WTI crude oil has increased notably, rising from just 12.23 U.S. dollars per barrel in 1976 to a peak of 99.06 dollars per barrel in 2008. Geopolitical conflicts and their impact on oil prices The price of oil is controlled in part by limiting oil production. Prior to 1971, the Texas Railroad Commission controlled the price of oil by setting limits on production of U.S. oil. In 1971, the Texas Railroad Commission ceased limiting production, but OPEC, the Organization of Petroleum Exporting Countries with member states Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela among others, continued to do so. In 1972, due to geopolitical conflict, OPEC set an oil embargo and cut oil production, causing prices to quadruple by 1974. Oil prices rose again in 1979 and 1980 due to the Iranian revolution, and doubled between 1978 and 1981 as the Iran-Iraq War prevented oil production. A number of geopolitical conflicts and periods of increased production and consumption have influenced the price of oil since then.

The number of crude oil and natural gas rotary rigs in operation in the United States has fluctuated greatly since the mid-20th century. Oil production in the United States dropped steadily from the 1960s, as the OPEC bloc began producing and exporting oil at low prices, however the shocks of the 1970s saw oil prices rise significantly after OPEC placed an embargo on the U.S. and its allies in 1973. The U.S. ramped up production to try and negate some of the effects of this embargo, but the long term effect of this was that demand in the 1980s dropped, in what was known as the 1980s oil glut. The number of oil and gas rotary rigs then remained below 1,000 throughout the 1990s, before the oil boom in South Dakota and the move towards self-sufficiency took place in the early 2000s. In more recent years, rotary rigs are being replaced by top-drive drills, which are much more efficient as they can bore for two or three times more than a rotary rig in one section.

As of February 2025, the average annual price of Brent crude oil stood at 77.36 U.S. dollars per barrel. This is some three U.S. dollars lower than the 2024 average. 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 means 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 comprises 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 amounted to 76.55 U.S. dollars per barrel in 2024.

In February 2025, the price for one barrel of West Texas Intermediate (WTI) crude oil averaged 71.53 U.S. dollars. This was a decrease compared to the previous month amid continued weak demand outlooks and expectations for production increases. WTI and other benchmark crudes WTI is also known as "Texas light sweet", and is a grade of crude oil used as a benchmark for oil produced in the United States. It has an API gravity of around 39.6 and specific gravity of about 0.827, which, relative to other crude oils, is considered “light,” hence the name. WTI also contains about 0.24 percent sulfur, making it a “sweet” crude oil. The price of WTI can be compared to the prices other of crude oils, i.e. UK Brent, the OPEC basket, and Dubai Fateh oil. WTI crude oil is the underlying commodity of the Chicago Mercantile Exchange’s oil futures contracts. U.S. oil production and its influence on light oil prices The price development of WTI crude oil relative to Brent crude oil has been influenced by variances in U.S. crude oil transportation and increased U.S. oil production. New transportation infrastructure became operational in early 2013, easing the movement of crude oil in the mid-continent and raising the price of WTI. Since then, U.S. refineries have increased production of crude oil to record levels, also raising the price of WTI. Meanwhile, expedited crude transport in the U.S. put downward pressure on Brent crude oil as domestic crude replaced some imported Brent crude. Between 2014 and 2016, UK Brent prices dropped rapidly, as was the case for all other crude oils.

In 2023, oil production in the United States reached 19.4 million barrels per day, the highest value within the period of consideration. The United States currently produces more oil than any other country in the world. Why has U.S. oil production increased? As U.S. oil production has more than doubled since the 2008 recession, imports of crude oil to the United States have decreased. An upsurge in foreign oil prices during the financial crisis, particularly from OPEC countries located mainly in the Middle East, motivated the U.S. energy industry to find ways to increase production domestically. Developments in extraction technology During the recession, investors took advantage of low-interest rates to develop costly oil extraction processes such as hydraulic fracturing. Also known as “fracking,” this extraction method made it possible to access shale oil deep underground that was once out of reach. Texas and New Mexico are major sites of shale reserves and have thus become the two largest oil-producing states in the country.

OPEC accounts for over 37 percent of the world’s total crude oil production. In 2023, OPEC's production showed a decrease of 1.5 percentage points compared to the previous year. That same year, the annual average OPEC reference basket price was 83 U.S. dollars per barrel. OPEC stands for the Organization of the Petroleum Exporting Countries and was established in Iraq in 1960. Regional distribution OPEC includes 13 member countries located mostly in the Middle East and Africa, though also in South America. Over the past decade, roughly a third of the world’s total oil production has come from the Middle East, while the share produced by Africa and South America have been declining. Overall, global oil production has increased in almost every year except during times of economic crisis. OPEC has the highest global reserves share Although combined production has fluctuated at almost the 40 percent mark, the OPEC's share in global crude oil reserves was significantly higher. In 2023, it was double the worldwide production share. Similar to production, this figure has also remained relatively unchanging in the last decade.

The global demand for crude oil (including biofuels) in 2023 amounted to 102.21 million barrels per day. The source expects economic activity and related oil demand to pick up by the end of the year, with forecast suggesting it could increase to more than 104 million barrels per day.

Motor fuels make up majority of oil demand

Oil is an important and versatile substance, used in different ways and in different forms for many applications. The road sector is the largest oil consuming sector worldwide. It accounts for nearly one half of the global demand for oil, largely due to reliance on motor spirits made from petroleum. The OPEC projects global oil product demand to reach 110 million barrels per day by 2045, with transportation fuels such as gasoline and diesel expected to remain the most consumed products. Diesel and gasoil demand is forecast to amount to 30.1 million barrels per day in 2045, up from 27.6 million barrels in 2021. Gasoline demand is forecast at 27.6 million barrels by 2045.

Beyond oil - efforts made by an industry looking to cut carbon intensity

Despite oil producing bodies such as the OPEC seeing continued importance for crude oil in the future, efforts have been made within the energy industry in finding an alternative to the fossil fuel. One such alternative generating great enthusiasm is hydrogen. The most abundant chemical element in the universe has become of particular interest due to its potential as an energy carrier. Similar to oil, it may serve as a feedstock or main ingredient for transportation fuels, energy generation and storage, and also chemicals production. While today it is mainly won from natural gas conversion (so-called grey hydrogen), most investments are aimed at making hydrogen production through electrolysis using renewable electricity (green hydrogen) more cost efficient. Oil refineries and ammonia production facilities are main consumers of hydrogen, with the transportation sector accounting for a much lesser share.

Stagflation (stagnation and inflation in one word) depicts a time period when an economy is not only suffering from a recession (declining GDP), but high unemployment and inflation rates as well. Usually unemployment and inflation are inversely related, which makes stagflation a rare occurrence. It first happened in the 1970s, when OPEC put an oil embargo on the United States, resulting in oil prices skyrocketing to three times the standard value at that time. As of September 2023, the price of oil fell by 20 percent in comparison to last year after having increased by 76 perent as a result of Russian invasion of Ukraine. The has been signs of stagflation in some countries through 2022 and 2023, but falling inflation rates indicate that the worst has been avoided.

The global energy price index stood at around 106.9 in 2023. This was a decrease of 45 points compared to the previous year, when fuel and power demand increased as the economies recovered from the coronavirus pandemic. For 2024, forecasts suggest the price index would decrease to 104. Price indices show the development of prices for goods or services over time relative to a base year. Commodity prices may be dependent on various factors, from supply and demand to overall economic growth. Electricity prices around the world As with overall fuel prices, electricity costs for end users are dependent on power infrastructure, technology type, domestic production, and governmental levies and taxes. Generally, electricity prices are lower in countries with great coal and gas resources, as those have historically been the main sources for electricity generation. This is one of the reasons why electricity prices are lowest in resource-rich countries such as Qatar, Russia, and the United States. Meanwhile, many European governments that have introduced renewable surcharges to support the deployment of solar and wind power and are at the same time dependent on fossil fuels imports, have the highest household electricity prices. Benchmark oil prices One of the commodities found within the energy market is oil. Oil is the main raw material for all common motor fuels, from gasoline to kerosene. In resource-poor and remote regions such as Alaska, Hawaii, and Cyprus, it is also one of the largest sources for electricity generation. Benchmark oil prices such as Europe’s Brent, the United States' WTI, or the OPEC basket are often used as indicators for the overall energy price development.

The cost of diesel fuel in the United States reached an annual average of 4.21 U.S. dollars per gallon in 2023. This was a decrease compared to the previous year, when diesel sold for an average of nearly five U.S. dollars per gallon. Increased economic activity and thus fuel demand combined with supply constraints following the Russia-Ukraine war in 2022, which resulted in a notable rise in monthly diesel prices.

Crude oil prices and their impact on motor fuel prices

Motor fuel prices largely mirror major oil benchmarks, such as the OPEC reference basket, WTI, and Brent. As such, the oil glut in 2015 and 2016, which followed years of increased oil production output by the U.S., is largely responsible for the fall in diesel prices seen in those years. The same is true for the 2020 pandemic-induced oil crisis and fall in benchmarks that year.

Diesel and gasoline price development

The usage of diesel began in the 1930s, but until further development in the 1960s, diesel vehicles were mostly used commercially. In the U.S., diesel-powered cars remain a fairly small portion of the automobile market and diesel fuel consumption is far lower than gasoline consumption. In general, gasoline also tends to be more widely available than diesel fuel and usually sells for a lower retail price. However, diesel engines have better fuel economy than gasoline engines, and as such are often used for large commercial vehicles.

In 2023, Dubai Fateh had an average price of 82.09 U.S. dollars per barrel, down from the 96.38 U.S. dollars per barrel compared to the previous year. Dubai Crude (Fateh) oil price Dubai Crude (Fateh) is the most important crude oil benchmark for Asia. Dubai Crude originated in Dubai in the Persian Gulf. Another name for this crude oil is Fateh. The name Fateh comes from an offshore oil field, located some 60 miles from Dubai, and is, therefore, part of the United Arab Emirates. One of the advantages of Dubai Crude compared to other Persian Gulf crude oils, and a main reason why it is used as an oil marker, is its instant availability. Dubai Crude, behind West Texas Intermediate (WTI) and UK Brent, is one of the lighter crude oils. On the other hand, Dubai Crude contains some two percent of sulphur, and thus is part of the so-called sour crude oils. In comparison, UK Brent contains 0.37 percent of sulphur, which means it is a so-called sweet crude oil. The refining of sour and heavier oils is always more expensive than it is for sweeter and lighter oils. Dubai Crude, the same as OPEC oils, is mostly refined and traded in the Asian region. The other two crucial oil benchmarks are West Texas Intermediate (WTI), which is especially important for North America, and UK Brent (Brent Crude), which dominates the European oil market. Such benchmarks are essential for referencing the many types and grades of oil on the worldwide market.With the exception of the years 2009 and 2010, there was a stable increase in the price for one barrel of Dubai-Fateh crude oil in the last ten years, until 2015, when the price dropped by half. The mean price per barrel stood at approximately 24 U.S. dollars in 2002. By 2012, this price had increased to more than 109 U.S. dollars, but dropped to 51.20 U.S. dollars per barrel 2015.

The statistic shows the inflation rate in Saudi Arabia from 1987 to 2022, with projections up until 2029. In 2023, the average inflation rate amounted to 2.33 percent compared to the previous year. Oil production in Saudi Arabia Saudi Arabia’s economy relies heavily on production and export of oil and petroleum. A look at the distribution of global oil reserves by country shows that only Venezuela possesses a higher share in global oil reserves than the Arab state. All in all, Saudi Arabia’s economy is doing quite well. The oil reserves in Saudi Arabia have increased over the last two decades, and the same can be said for the country’s gross domestic product. The unemployment rate has been stable, while the trade balance has shown a steady upwards trend with a significant jump in 2011. Accordingly, Saudi Arabia’s national debt in relation to gross domestic product has been decreasing dramatically over the last ten years. Saudi Arabia is also among the countries with the highest oil consumption worldwide; a ranking of the share of the major consuming countries in global oil consumption, which is led by the United States (which consume almost one fifth of global oil), places Saudi Arabia sixth, behind the US, Russia, and China. Being one of the leading oil producing countries, Saudi Arabia is also a member of OPEC (Organization of the Petroleum Exporting Countries), an association whose primary goal is regulating crude oil prices worldwide and coordinating the oil production and trade of the member countries. According to OPEC, the average price for crude oil has been rising since the 1960s.