This table shows the Annual Average Crude Oil Price from 1946 to the present. Prices are adjusted for Inflation to April 2008 prices using the Consumer Price Index (CPI-U) as presented by the Bureau of Labor Statistics.
Note: Since these are ANNUAL Averages they will not show the absolute peak price and will differ slightly from the Monthly Averages in our Oil Price Data in Chart Form.
Also note that although the monthly peak occurred in December 1979 the annual peak didn't occur until 1980 since the average of all the monthly prices was higher in 1980.
Inflation adjusted prices reached an all-time low in 1998 (lower than the price in 1946)! And now just ten years later we are at the all time high for crude oil (above the 1979-1980 prices) in real inflation adjusted terms.
Prices are based on historical free market (stripper) prices of Illinois Crude as presented by IOGA . Price controlled prices were lower during the 1970's but resulted in artificially created gas lines and shortages and do not reflect the true free market price. Fatih Birol, chief economist of the International Energy Agency said in October 2007 that oil prices will remain high for the foreseeable future due to rapid increases in demand from the rapidly growing economies of India and People's Republic of China.[20] This does not quite align with the fact that prices started climbing in 2003, when no special event took place in either country, but when Iraq was invaded. Then prices doubled again between 2006 and 2008, this time due to speculation, when US trading was allowed to take place through the US-owned ICE Futures exchange in London rather than the NYMEX, thereby escaping US regulatory requirements. [21] [22] The ministers of OPEC, meeting in early December 2007, appeared to reach a consensus for high, but stable prices. This price point would deliver consistently high income to the oil producing states, but avoid prices so high that they would depress the economies of the oil consuming nations. A range of $70-80 was suggested by some analysts to be OPEC's goal.[23] This would be in step with the price of shale oil, which, though more expensive to drill, will not likely go above $100. [20] The ministers of OPEC Major oil-exporting countries are rapidly developing and are using more oil domestically. Particularly significant are Indonesia, which no longer exports oil, Mexico and Iran, where projected demand will exceed production in about five years, and Russia, which is growing rapidly.[24]
Russian energy giant Gazprom meanwhile forecast that soaring oil prices would "very soon" hit 250 dollars a barrel.[citation needed] OPEC's president predicted prices might reach $170 by the summer of 2008.[25][26] Neither prediction came true.
Note: Since these are ANNUAL Averages they will not show the absolute peak price and will differ slightly from the Monthly Averages in our Oil Price Data in Chart Form.
Also note that although the monthly peak occurred in December 1979 the annual peak didn't occur until 1980 since the average of all the monthly prices was higher in 1980.
Inflation adjusted prices reached an all-time low in 1998 (lower than the price in 1946)! And now just ten years later we are at the all time high for crude oil (above the 1979-1980 prices) in real inflation adjusted terms.
Prices are based on historical free market (stripper) prices of Illinois Crude as presented by IOGA . Price controlled prices were lower during the 1970's but resulted in artificially created gas lines and shortages and do not reflect the true free market price. Fatih Birol, chief economist of the International Energy Agency said in October 2007 that oil prices will remain high for the foreseeable future due to rapid increases in demand from the rapidly growing economies of India and People's Republic of China.[20] This does not quite align with the fact that prices started climbing in 2003, when no special event took place in either country, but when Iraq was invaded. Then prices doubled again between 2006 and 2008, this time due to speculation, when US trading was allowed to take place through the US-owned ICE Futures exchange in London rather than the NYMEX, thereby escaping US regulatory requirements. [21] [22] The ministers of OPEC, meeting in early December 2007, appeared to reach a consensus for high, but stable prices. This price point would deliver consistently high income to the oil producing states, but avoid prices so high that they would depress the economies of the oil consuming nations. A range of $70-80 was suggested by some analysts to be OPEC's goal.[23] This would be in step with the price of shale oil, which, though more expensive to drill, will not likely go above $100. [20] The ministers of OPEC Major oil-exporting countries are rapidly developing and are using more oil domestically. Particularly significant are Indonesia, which no longer exports oil, Mexico and Iran, where projected demand will exceed production in about five years, and Russia, which is growing rapidly.[24]
Russian energy giant Gazprom meanwhile forecast that soaring oil prices would "very soon" hit 250 dollars a barrel.[citation needed] OPEC's president predicted prices might reach $170 by the summer of 2008.[25][26] Neither prediction came true.