Oil Prices in 2016
Brent crude averaged $43.64 per barrel in 2016 and WTI $43.29, the lowest annual averages since 2004. Brent spot hit $26.01 on 20 January, the bottom of the 2014–2016 crash. It then roughly doubled, ending the year near $55 after OPEC and Russia agreed their first joint production cut in 15 years.
| Month | Brent | WTI | Brent − WTI | Brent (relative) |
|---|---|---|---|---|
| January | $30.70 | $31.68 | −$0.98 | |
| February | $32.18 | $30.32 | $1.86 | |
| March | $38.21 | $37.55 | $0.66 | |
| April | $41.58 | $40.75 | $0.83 | |
| May | $46.74 | $46.71 | $0.03 | |
| June | $48.25 | $48.76 | −$0.51 | |
| July | $44.95 | $44.65 | $0.30 | |
| August | $45.84 | $44.72 | $1.12 | |
| September | $46.57 | $45.18 | $1.39 | |
| October | $49.52 | $49.78 | −$0.26 | |
| November | $44.73 | $45.66 | −$0.93 | |
| December | $53.31 | $51.97 | $1.34 | |
| 2016 average | $43.64 | $43.29 | $0.35 |
Source: U.S. Energy Information Administration (EIA), monthly averages of daily spot prices, Europe Brent spot FOB (series RBRTE) and Cushing, OK WTI spot FOB (series RWTC), retrieved 13 October 2026. Nominal dollars.
What drove oil prices in 2016, quarter by quarter
Q1: Iran returns and prices bottom
Global inventories were swelling after two years in which OPEC pumped for market share and US shale output peaked. On 16 January international sanctions on Iran were lifted under the nuclear deal, opening the way for more Iranian exports. Brent spot fell to $26.01 on 20 January, and WTI spot reached its low of $26.19 on 11 February. In mid-February Saudi Arabia, Russia, Qatar and Venezuela proposed freezing output at January levels. The idea alone halted the slide, and Brent averaged $38.21 in March, up from $30.70 in January.
Q2: The failed freeze and unplanned outages
Talks in Doha on 17 April collapsed when Saudi Arabia insisted that Iran join the freeze. Prices kept rising anyway because supply was being lost elsewhere. Wildfires around Fort McMurray in May shut in a large part of Canada's oil sands output, militant attacks cut Nigerian production, and US shale output declined after the drilling collapse of 2015. Brent averaged $48.25 in June, the strongest month of the year until October.
Q3: Brexit and a summer pause
The UK's vote to leave the EU on 23 June hit risk assets, and high inventories weighed on prices over the summer. Brent averaged $44.95 in July. On 28 September in Algiers, OPEC agreed in principle to cut output to a range of 32.5 to 33.0 million barrels per day. It was the group's first decision to reduce supply since 2008.
Q4: The first OPEC+ agreement
Doubts about the details pushed Brent's November average down to $44.73. On 30 November in Vienna, OPEC agreed to cut about 1.2 million b/d from January 2017, taking its ceiling to 32.5 million b/d. On 10 December eleven non-OPEC producers led by Russia pledged about 558,000 b/d of further cuts, of which Russia's share was 300,000 b/d. This was the start of the alliance now known as OPEC+. Brent averaged $53.31 in December and ended the year at $54.96, about 51% above its first trading day.
2016 highs and lows
| Brent | WTI | |
|---|---|---|
| First trading day | $36.28 (4 January 2016) | $36.81 (4 January 2016) |
| Annual high | $54.97 (29 December 2016) | $54.01 (28 December 2016) |
| Annual low | $26.01 (20 January 2016) | $26.19 (11 February 2016) |
| Last trading day | $54.96 (30 December 2016) | $53.75 (30 December 2016) |
Daily closing spot assessments from EIA series RBRTE and RWTC (via FRED). Futures settlements and intraday prices differ from these spot values.
How 2016 compares
Brent's 2016 average was $8.68 below 2015 ($52.32) and less than half of the 2014 average ($98.97). The Brent-WTI spread almost disappeared, averaging $0.35, and WTI traded above Brent in several months. The US lifted its crude export ban in December 2015, so US barrels could compete directly with Brent-linked grades. For the full slump, see the 2014–2016 oil price crash. For context on supply and demand drivers, read what moves oil prices, or compare all years in the oil price history table.
← Oil prices in 2015
Brent averaged $52.32: the shale glut and OPEC's market-share strategy.
Oil prices in 2018 →
Brent averaged $71.34: Iran sanctions rally, then a Q4 crash.
Oil prices in 2016 FAQ
What was the average oil price in 2016?
Brent crude averaged $43.64 per barrel in 2016 and WTI averaged $43.29, according to EIA spot price data. For Brent this was the lowest annual average since 2004. Oversupply from the 2014–2016 market-share battle between OPEC and US shale producers kept prices low.
What was the lowest oil price in 2016?
Brent's lowest daily spot price in 2016 was $26.01 per barrel on 20 January, shortly after sanctions on Iran were lifted. WTI's spot low was $26.19 on 11 February. These were the lowest oil prices between 2003 and the pandemic crash of 2020.
When was the first OPEC+ deal signed?
OPEC agreed a cut of about 1.2 million barrels per day on 30 November 2016. On 10 December 2016, Russia and ten other non-OPEC producers agreed to cut about 558,000 b/d more. The combined cuts started in January 2017 and created the OPEC+ alliance.
Why did oil prices recover in 2016?
Oil recovered in 2016 because US shale output fell after the 2015 drilling collapse, and unplanned outages in Canada and Nigeria removed supply. Talk of a producer freeze, and later the OPEC+ cut agreements, also lifted sentiment. Brent roughly doubled from its January low by year-end.
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