Oil Price as of May 20, 2026

(SeaPRwire) –   As of 9:30 a.m. Eastern Time today, oil is trading at $110.34 per barrel, using Brent crude as the benchmark. This represents a decrease of $2.59 from yesterday morning and an increase of approximately $44.50 compared to the same time last year.

	oil price per barrel	% Change
Price of oil yesterday	$112.93	-2.29%
Price of oil 1 month ago	$97.50	+13.77%
Price of oil 1 year ago	$65.83	+67.61%

Will oil prices go up?

Predicting the future trajectory of oil prices with absolute certainty is not possible. While a multitude of factors influence oil trading, supply and demand remain the primary determinants. Oil prices can experience significant fluctuations in response to heightened concerns about economic slowdowns, geopolitical conflicts, or similar disruptive events.

How oil prices translate to gas pump prices

The price displayed at the gas pump incorporates more than just the cost of crude oil. It also includes expenses related to refining, distribution through wholesale channels, various taxes, and the profit margin of the retail station. Nevertheless, crude oil remains the most significant factor influencing the final pump price, typically accounting for over half of the cost per gallon. Increases in oil prices generally lead to a swift rise in gasoline prices. Conversely, when oil prices fall, gas prices tend to decrease gradually, a phenomenon often referred to as “rockets and feathers.”

The role of the U.S. Strategic Petroleum Reserve

The United States maintains a strategic stockpile of crude oil, known as the Strategic Petroleum Reserve, to be utilized in emergency situations. Its primary purpose is to ensure energy security during crises such as sanctions, severe weather-related damage to infrastructure, or wartime. The reserve can also play a crucial role in mitigating the impact of sudden price surges caused by supply disruptions.

It is important to note that the reserve is not intended as a long-term solution but rather to provide immediate relief to consumers and guarantee the continued operation of essential economic sectors, including key industries, emergency services, and public transportation.

How oil and natural gas prices are linked

Both oil and natural gas are fundamental energy sources. Significant shifts in oil prices can indirectly influence natural gas prices. For instance, if oil prices escalate, some industries may opt to substitute natural gas for oil in certain operational areas where feasible, thereby increasing the demand for natural gas.

Historical performance of oil

Oil prices are commonly assessed using two primary benchmarks:

• Brent crude oil serves as the principal global oil benchmark.
• West Texas Intermediate (WTI) is the primary benchmark for North America.

Brent crude is generally considered a more accurate indicator of global oil performance as it influences the pricing of a substantial portion of the world’s traded crude oil. It also provides a valuable basis for examining historical oil trends. In fact, the U.S. Energy Information Administration now relies on Brent as its primary reference in its Annual Energy Outlook.

Examining the Brent benchmark over several decades reveals that oil prices have been highly volatile. They have experienced sharp increases driven by conflicts and production cuts, as well as significant declines attributed to global recessions and periods of oversupply, often referred to as a “glut.” Notable historical events include:

• The early 1970s witnessed the first major oil shock following the Middle East’s decision to reduce exports and impose an embargo on the U.S. and other nations during the Yom Kippur War.
• Prices decreased in the mid-1980s due to factors such as reduced demand and the emergence of new non-OPEC oil producers.
• Prices surged again in 2008, fueled by growing global demand, but subsequently plummeted alongside the global financial crisis.
• During the COVID-19 lockdowns in 2020, oil demand experienced an unprecedented collapse, driving prices below $20 per barrel.

In summary, the historical performance of oil has been far from stable, heavily influenced by geopolitical events, economic downturns, decisions by OPEC, and evolving energy policies and initiatives.

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Frequently asked questions

How is the current price of oil per barrel actually determined?

The current price of oil per barrel is largely determined by supply and demand dynamics, including information regarding potential future supply and demand scenarios (such as geopolitical events and decisions by OPEC+). In the United States, prices are also influenced by the administration’s policies on oil drilling, which can impact future supply. For instance, in 2025, the Trump administration reversed the Biden administration’s policy of restricting oil drilling in the Arctic by reopening over 1.5 million acres in the Coastal Plain of the Arctic National Wildlife Refuge for oil and gas leasing.

How often does the price of oil change during the day?

The price of oil is subject to constant updates when the futures markets are operational. A futures market functions as an auction where participants agree to buy or sell oil at a future date. As long as contracts are being traded by individuals and companies, the price of oil continues to fluctuate.

How does U.S. shale oil production affect the current price of oil?

Shale is a type of rock that contains oil and natural gas, essentially representing untapped energy resources. Increased access to shale by the U.S. leads to a greater availability of energy, which can help moderate oil price spikes due to a larger supply.

How does the current price of oil impact inflation and the broader economy?

Elevated oil prices tend to increase the cost of everyday goods and services. This impact extends beyond direct energy expenses (like heating and gasoline) to encompass the logistics involved in making products available to consumers. For example, increased shipping costs can affect the prices of items at the grocery store, as it becomes more expensive to transport goods from warehouses and farms to retail shelves.