The price of oil has climbed to $96.11 (£75) a barrel, with Brent crude rising by about $2 since Tuesday morning and standing nearly $26.50 higher than a year ago.
The latest figure, recorded at 8am Eastern Time on Wednesday September 2, represents a 2.12 per cent increase from the previous day. Brent was trading at $94.93 a barrel a month ago, compared with $69.60 at the same point last year.
Brent is the principal global benchmark for crude oil, while West Texas Intermediate (WTI) is the main reference price for North American oil. Brent is generally regarded as the better guide to international oil markets because it covers a larger share of globally traded crude.
Why the oil price is rising
Oil prices are driven chiefly by expectations about supply and demand. Conflict, sanctions, disruption to shipping routes and fears of an economic slowdown can all prompt sharp movements as traders reassess how much crude will be available and how much the world economy will need.
The US Energy Information Administration said crude markets had been affected by disruption to oil flows through the Strait of Hormuz during the second quarter of 2026. Brent futures reached $118 a barrel on April 29 before falling to $72 on June 26, highlighting the unusually wide swings seen this year. ([eia.gov](https://www.eia.gov/Todayinenergy/detail.php?id=67865))
The International Energy Agency said in its August market report that North Sea Dated crude, a physical Brent-related benchmark, ended July at $96.80 a barrel after rising by $25.67 during the month. It also said continuing disruption in the Gulf and falling inventories were keeping risks elevated. ([iea.org](https://www.iea.org/reports/oil-market-report-august-2026))
No forecast can determine with certainty whether oil will continue higher. Any easing of geopolitical tensions or improvement in supplies could push prices down, while further disruption or stronger demand could drive them upwards.
What higher oil prices mean for motorists
The price of crude is the biggest single component of the cost of petrol and diesel, but the amount paid at the forecourt also includes refining, transport, wholesale distribution, taxes and the retailer’s margin.
Higher crude prices can feed through to petrol and diesel costs relatively quickly. Falls are often slower to appear, a pattern sometimes described as “rockets and feathers” because pump prices rise rapidly but decline more gradually.
More expensive oil can also raise the cost of transporting goods and operating machinery, adding pressure to prices across the wider economy. Fuel-intensive industries and businesses that rely on deliveries are particularly exposed.
Oil’s volatile history
Oil has rarely moved in a steady line. Prices surged during the oil shocks of the 1970s, weakened in the mid-1980s as demand softened and non-OPEC production expanded, and climbed sharply in 2008 before collapsing during the global financial crisis.
Demand fell to an unprecedented level during the Covid-19 lockdowns in 2020, sending oil below $20 a barrel. Wars, production decisions by OPEC and its allies, economic recessions and changes in energy policy have continued to shape the market.
The United States also holds crude in the Strategic Petroleum Reserve, which can be released during emergencies such as war, sanctions or major supply disruptions. The reserve is intended as temporary support rather than a permanent solution to high prices.
Oil and natural gas prices can influence one another. When crude becomes more expensive, some industrial users may switch to gas where possible, potentially increasing demand for the alternative fuel.
