A Brief View Of Historic Crude Oil Prices
Michalis 'BIG Mike' Kotzakolios


Defined Tag: Historic Crude Oil Prices.

Over time, crude oil prices fluctuate. In fact, even over short periods of time, crude oil prices can shoot up fast and then drop down quickly, too. Thus, any examination of historic crude oil prices will reveal interesting, but not always obvious trends. This is partly because of seasonal trends. For instance, in the winter, the price of crude oil tends to slowly climb, as the demand for heating oil rises. In the spring, prices ease slightly, only to rise again in the summer. Additionally, any event that can significantly alter demand or supply will shift crude oil prices. Even events that could have, but did not, change demand or supply may have had an affect on oil prices at one point in time.

One source states an average historic crude oil price of $2.51 USD per barrel in 1950. That sounds far too small, but wages and income were much smaller then. The 1960 price was $2.88, and the 1970 price was only $3.18. The historic oil prices for 1980 was $21.59, a drastic increase. The 1990 and 2000 crude oil prices were given as $20.03 and $26.72, respectively. The last available historic crude oil price given was $58.30 per barrel in 2006. At the time of this writing, crude oil was trading at $61 per barrel. It is worth noting that the 1950 historic crude oil price of $2.51 is about $19.73 when adjusted for inflation.

There have been various global energy crises that have influenced historical oil prices. In 1973, many of the OPEC oil producing nations created an oil export embargo in protest of Western support for Israel during the Yom Kippur War. The Iranian Revolution precipitated another energy crisis in 1979. A 33% spike in the historic price of crude oil in 1990 was caused by the Gulf War. In 2000, a UK fuel protest, combined with high fuel taxes, cause the historical oil price to increase. During the period of 2004-2006, crude oil prices reached record highs as the U.S. was involved in the Iraq War. Additionally, increased demand for oil in the US and in China contributed to the increased upward pressure on price.

Crude oil is a resource that everyone in the United States uses in significant quantities. Even if you do not own your own vehicle, you live in a house or take public transportation, which means you rely on crude oil; and are subject to its fluctutations. One major element is the interaction of supply and demand for oil. Additionally, expectations play a major role. Crude oil prices are being adjusted slightly downward based on a forecast of a warm winter. Historic crude oil prices are impacted by far more than what the cost required for the oil supplier to produce the product.