# Oil prices surge 25% in one year Brent crude reaches $87.38 per barrel, marking a $17.50 increase compared to last year. - **Source:** [Fortune](https://fortune.com) - **Published:** 2026-08-03 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/4bf64366-ec70-405c-b3b5-6a2ec8fe7098 ## Current oil prices As of August 3, 2026, Brent crude oil reached $87.38 per barrel, representing a 71-cent increase from yesterday. Over the past year, oil prices have surged by $17.50, with a 20.92% monthly rise. These fluctuations create significant uncertainty in global energy markets, affecting everything from transportation costs to manufacturing expenses across industries worldwide. ## Impact on gasoline prices Crude oil price increases directly affect gasoline costs since oil accounts for more than half of gasoline's final price. However, when prices drop, gas stations are slow to reduce prices - a phenomenon known as 'rockets and feathers.' Additional factors like refinery costs, distribution networks, and taxes also determine the final price consumers pay at the pump. ## US Strategic Petroleum Reserve The US Strategic Petroleum Reserve serves as a critical buffer for energy security. Released during emergencies, this reserve aims to soften price shocks, particularly during wars, natural disasters, or economic crises. While not a long-term solution, it helps maintain operations in vital sectors during supply disruptions. The reserve's effectiveness depends on global market conditions and the scale of the crisis. ## Historical oil price volatility Oil prices have experienced dramatic fluctuations throughout history. The 1970s Yom Kippur War triggered the first major shock when Middle Eastern countries cut exports. Prices spiked in 2008 due to global demand but crashed during the financial crisis. COVID-19 lockdowns in 2020 pushed prices below $20 per barrel. Wars, economic cycles, and OPEC decisions continue to heavily influence oil markets. ## Effects on natural gas prices Rising oil prices indirectly impact natural gas demand as some industries switch fuels to cut costs. This substitution effect can drive up natural gas prices, demonstrating the interconnectedness of energy markets. The relationship between these commodities becomes particularly important for energy-intensive industries seeking cost-effective alternatives during periods of oil price volatility. ## Shale oil's market influence US shale oil production significantly affects global supply dynamics. Oil extracted from shale rock formations helps prevent extreme price spikes by increasing available supply. However, environmental concerns continue to surround shale extraction methods. For nations pursuing energy independence, shale represents both an opportunity and a subject of ongoing policy debates regarding sustainable development. ## Inflationary pressures High oil prices contribute to inflation by increasing transportation and production costs across the economy. Rising energy expenses affect both consumer spending and business operations, creating ripple effects throughout supply chains. Central banks must account for oil price fluctuations when setting monetary policy, as energy costs significantly influence overall price stability and economic growth projections. ## Future outlook Predicting oil prices remains exceptionally challenging due to numerous influencing factors. OPEC+ decisions, geopolitical tensions, economic growth rates, and alternative energy development all play roles. While energy transition efforts may change petroleum's long-term significance, oil will likely remain a crucial energy source for years to come. For investors and policymakers, closely monitoring oil market developments has never been more critical. ## Sources covering this story - https://fortune.com/article/price-of-oil-08-03-2026/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._