The 2022 Oil Price Spike
Russia invaded Ukraine on 24 February 2022. Within two weeks Brent futures touched about $139 per barrel intraday (7 March), and the EIA Brent spot price closed at $133.18 on 8 March, its highest since 2008. Brent averaged $100.93 for the year. Record emergency stock releases, a recession scare and the rerouting of Russian oil to Asia brought prices back to about $80 by December.
2022 month by month
| Month | Brent ($/bbl) | WTI ($/bbl) | Main event |
|---|---|---|---|
| Jan | $86.51 | $83.22 | Tight market after the 2021 recovery |
| Feb | $97.13 | $91.64 | Invasion (24 Feb) |
| Mar | $117.25 | $108.50 | Spike; US bans Russian oil imports (8 Mar); IEA releases |
| Apr | $104.58 | $101.78 | US 180 mb SPR plan; second IEA action; China lockdowns |
| Jun | $122.71 | $114.84 | Highest monthly average; record US pump prices |
| Sep | $89.76 | $84.26 | Rate rises and recession fears |
| Oct | $93.33 | $87.55 | OPEC+ cuts targets by 2 mb/d |
| Dec | $80.92 | $76.44 | EU embargo and G7 price cap start (5 Dec) |
Source: EIA Europe Brent and Cushing WTI spot prices, monthly averages. Full monthly table: oil prices in 2022.
Why prices spiked
Russia was one of the world's three largest oil producers and the largest exporter of crude and products combined. The market feared losing a large share of its exports. Buyers did not wait for sanctions: many Western refiners, traders, banks and shippers stopped handling Russian oil on their own ("self-sanctioning"), and Russia's Urals crude had to be sold at a deep discount to Brent. See Urals crude oil price.
The market was already tight. Stocks had fallen during the 2021 recovery, and OPEC+ was raising output only gradually, with several members unable to reach their quotas. With little spare capacity, any loss had a large price effect.
Products hit harder than crude
Russia was a major exporter of diesel to Europe. Distillate prices rose more than crude, and refining margins hit records. The weekly US average retail diesel price reached a then-record $5.810 a gallon on 20 June 2022, and regular gasoline peaked at $5.006 in the week of 13 June, according to the EIA. Natural gas prices in Europe rose even more, as Russian pipeline deliveries fell. See diesel price and natural gas price.
Record emergency stock releases
IEA members agreed two collective actions, on 1 March and 1 April 2022, the fourth and fifth in the agency's history. The United States announced on 31 March a release of 180 million barrels from the Strategic Petroleum Reserve over six months, the largest in its history at the time. By mid-2023 the SPR was at its lowest level since the early 1980s. The record was overtaken on 11 March 2026, when the IEA announced a collective release of 400 million barrels after the Strait of Hormuz closed.
Sanctions: embargo and price cap
- US import ban: announced on 8 March 2022.
- EU embargo: adopted in June 2022, covering seaborne Russian crude from 5 December 2022 and refined products from 5 February 2023, with an exemption for pipeline oil.
- G7 price cap: from 5 December 2022, Western shippers, insurers and banks could service Russian crude only if it was sold at or below $60 per barrel. Caps on products followed on 5 February 2023: $100 for products that trade at a premium to crude, such as diesel, and $45 for those at a discount, such as fuel oil.
The price cap aimed to keep Russian oil flowing, avoiding a supply shock, while cutting Moscow's revenue. Russia responded with a "shadow fleet" of older tankers operating outside Western insurance and finance.
The reshaped oil trade
Russian crude that had gone to Europe was redirected to India, China and Turkey, often on longer voyages. Europe replaced it with crude from the US, Norway, the Middle East and West Africa, and replaced Russian diesel with imports from the Middle East, India and the US. Longer routes raised freight costs and kept more oil at sea. See Russia's oil production and exports and India's oil imports.
Why prices fell in the second half
Russian exports fell far less than feared. Central banks raised interest rates quickly, which slowed growth and strengthened the dollar. China's COVID lockdowns cut demand. SPR barrels added supply. On 5 October 2022 OPEC+ cut its production targets by 2 million b/d to support prices, but Brent still ended the year near $80.
2022 compared with 2026
In 2026 the war with Iran and the closure of the Strait of Hormuz caused a larger physical disruption. The EIA Brent spot price reached $138.21 on 7 April 2026, above the 2022 spot high, and US retail diesel set new records above $6.50 a gallon in September 2026. The 2022 measures, from emergency stocks to sanctions, were the template for the 2026 response. See oil prices in 2026.
← Previous event: negative oil, April 2020
How WTI settled at −$37.63.
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1973 to 2026 compared in today's dollars.
2022 oil price spike FAQ
How high did oil prices go in 2022?
Brent futures touched about $139 per barrel intraday on 7 March 2022, the highest since 2008. The EIA Brent spot price peaked at $133.18 on 8 March. Brent's highest monthly average was $122.71 in June 2022, and the annual average was $100.93.
Why did oil prices rise when Russia invaded Ukraine?
Russia was among the largest oil exporters, and the market feared losing a large share of its crude and diesel. Many Western buyers stopped buying Russian oil before formal sanctions, and the market was already tight with low stocks and limited spare capacity.
What is the Russian oil price cap?
It is a G7 measure in force since 5 December 2022. Western shippers, insurers and banks may only service Russian crude sold at or below a set price, initially $60 per barrel. Caps of $100 and $45 per barrel for refined products started on 5 February 2023.
How much oil did the US release from the SPR in 2022?
The US Department of Energy released 180 million barrels from the Strategic Petroleum Reserve in 2022, announced on 31 March as part of the IEA's coordinated response. It was the largest SPR release in history at the time and left the reserve at its lowest level since the early 1980s.
Related pages
2022
Brent and WTI in 2022 month by month: the post-invasion spike to $139, SPR releases, the EU embargo and price cap, and the year-end decline.
Urals Crude
Urals crude explained: quality, export routes, the discount to Brent since 2022, the G7 price cap and how sanctions changed Russian oil pricing.
Strategic Petroleum Reserve
The US Strategic Petroleum Reserve: storage sites, capacity, current level, the 2022 emergency release and refills, and how SPR policy affects prices.
Russia
Russia's oil output and exports: Urals and ESPO grades, the shift to Asian buyers after 2022, the price cap, shadow fleet and OPEC+ role.