Inflation-Adjusted Oil Prices
In August 2026 dollars, the highest annual average oil price was 2011, at about $166 per barrel, followed by 2012 ($163), 2013 ($156), 2008 ($151) and 1980 ($150). The highest single price was July 2008's $147.50, worth about $225 today. The 2022 average of $101 equals about $116, and Brent's 2026 spot high of $138.21 (7 April) equals about $139.
Annual oil prices since 1970: nominal and real
| Year | Nominal | Aug 2026 dollars | Context | Real (relative) |
|---|---|---|---|---|
| 1970 | $1.80 | $15.53 | Before OPEC price control | |
| 1973 | $3.29 | $24.82 | Arab oil embargo begins | |
| 1974 | $11.58 | $78.67 | Price quadrupled | |
| 1979 | $31.61 | $145.90 | Iranian revolution | |
| 1980 | $36.83 | $149.71 | Iran-Iraq war | |
| 1986 | $14.43 | $44.10 | Price collapse | |
| 1990 | $23.73 | $60.83 | Gulf War | |
| 1998 | $12.72 | $26.13 | Asian crisis low | |
| 2005 | $54.52 | $93.52 | Demand boom | |
| 2008 | $97.26 | $151.32 | $147 peak and crash | |
| 2011 | $111.26 | $165.68 | Arab Spring; highest real average | |
| 2012 | $111.67 | $162.93 | Iran sanctions | |
| 2014 | $98.95 | $140.01 | Crash begins | |
| 2016 | $43.73 | $61.04 | Shale glut low | |
| 2020 | $41.84 | $54.15 | Pandemic; negative WTI | |
| 2022 | $101.32 | $115.97 | Russia invades Ukraine | |
| 2024 | $80.76 | $86.24 | Normalisation | |
| 2025 | $69.10 | $71.90 | Supply growth, OPEC+ unwinding |
Nominal prices: Energy Institute Statistical Review of World Energy 2025 (via Our World in Data), Arabian Light (Ras Tanura) to 1983 and Brent from 1984, converted from dollars per cubic metre at 6.2898 barrels per m³. These differ slightly from EIA Brent averages on the oil price history page (for example $100.93 for 2022). Real prices: nominal × (CPI-U August 2026 ÷ CPI-U annual average of that year).
Method: how we adjust for inflation
We use the US Consumer Price Index for All Urban Consumers (CPI-U, not seasonally adjusted) from the Bureau of Labor Statistics. The latest published index is August 2026, at 334.980. For each year:
Real price = nominal price × (334.980 ÷ that year's average CPI-U)
Example: in 1980 the average CPI-U was 82.408 and oil averaged $36.83, so the real price is $36.83 × 334.980 ÷ 82.408 = $149.71. For 2025 the average uses the 11 months published; the BLS did not publish an October 2025 index. For single-day prices we use that month's index: the July 2008 index was 219.964, so $147.50 becomes about $224.63.
The CPI measures US consumer prices. For buyers in other currencies, exchange rates matter as much as inflation; see oil and the US dollar.
Peaks compared in August 2026 dollars
| Peak | Nominal | Aug 2026 dollars |
|---|---|---|
| 1980 annual average | $36.83 | $149.71 |
| Brent futures intraday high, 11 Jul 2008 | $147.50 | $224.63 |
| Brent monthly average, Jun 2008 (EIA) | $132.32 | $202.57 |
| Brent monthly average, Apr 2011 (EIA) | $123.26 | $183.64 |
| Brent futures intraday high, 7 Mar 2022 | ≈ $139.13 | ≈ $162 |
| Brent monthly average, Jun 2022 (EIA) | $122.71 | $138.73 |
| Brent spot high, 7 Apr 2026 (EIA) | $138.21 | $139.02 |
| Brent monthly average, Apr 2026 (EIA) | $117.29 | $117.98 |
Sources: EIA Europe Brent spot price FOB (monthly and daily); ICE Brent futures records; BLS CPI-U. The 2026 figures are nominal prices from this year, so the adjustment is small.
What real prices tell us
The 1970s and 2000s shocks were similar in size
In real terms, the 1980 average (about $150) and the 2008 average (about $151) were almost identical. The 2011–2013 period, when Brent stayed above $100 for three years, was the most expensive sustained stretch in history, even though no single month beat mid-2008.
2022 and 2026 were sharp but less extreme
Brent's highest monthly average in 2022 equals about $139 in today's money, well below 2008's $203. The 2026 Hormuz shock pushed the April 2026 monthly average to $117.29, and EIA spot prices returned above $130 in September and October 2026. In real terms the April 2026 average was close to 2022 levels, below the June 2022 monthly peak and well below the 2008 and 2011–2012 peaks.
Lows are also lower than they look
The lowest real monthly Brent average since EIA records began in 1987 was December 1998, when $9.82 equals about $20 in today's dollars. The 2016 and 2020 lows, which felt extreme at the time, were higher in real terms.
Real prices and affordability
Inflation adjustment is only part of the affordability picture. Incomes have grown faster than consumer prices over the long run, and economies use much less oil per dollar of GDP than in the 1970s, so the same real price takes a smaller share of income today. On the other hand, refined products can rise much more than crude in a supply shock: US diesel set records above $6.50 a gallon in September 2026 even though Brent was below its 2008 real peak. See how oil prices affect inflation and diesel prices.
Inflation-adjusted oil price FAQ
What was the highest oil price ever adjusted for inflation?
The highest single price was Brent's $147.50 on 11 July 2008, worth about $225 per barrel in August 2026 dollars. On annual averages, 2011 was the most expensive year at about $166 in today's money, followed by 2012, 2013, 2008 and 1980.
Was oil more expensive in 1980 or 2008?
On annual averages they were almost equal in real terms: about $150 for 1980 and $151 for 2008 in August 2026 dollars. The 2008 peak was much higher, because prices rose and fell within a single year, while the 1979–81 period stayed high for three years.
How do you calculate the inflation-adjusted oil price?
Multiply the nominal price by the ratio of today's consumer price index to the index in the year or month of the price. With CPI-U at 334.980 in August 2026 and 82.408 for 1980, the 1980 average of $36.83 becomes $36.83 × 334.980 ÷ 82.408, or about $150.
Is oil expensive today in real terms?
In 2025, oil averaged about $69 per barrel, or $72 in August 2026 dollars, below the long-run average of the 2000s and 2010s. Prices rose sharply in 2026 after the Strait of Hormuz closed, but Brent's April 2026 monthly average of $117.29 was still below the 2008 and 2011–2012 real peaks.
Related pages
Oil Price History
Crude oil price history: Brent and WTI annual average prices 2000-2025, the spread by year, and the events behind every spike and crash.
Oil Prices and Inflation
How oil prices feed into inflation, consumer spending and GDP: pass-through to CPI, the 1970s versus today, and what central banks watch.
2008 Oil Price Spike
The 2008 oil price spike: emerging-market demand, thin spare capacity, the weak dollar and speculation, then the 75% crash that followed.
1979 Oil Crisis
The 1979 oil crisis: Iranian supply loss, panic buying, prices rising to about $35-40 and the Iran-Iraq war, plus the 1980s demand collapse that followed.