Historical Crude Oil Prices (Chart)

This Chart presents Monthly Average Oil Prices.  For more information see Annual Average Oil Prices in Table Form .
 

The above chart shows oil prices adjusted for inflation in June 2009 dollars. As you can see current prices in real (inflation adjusted) terms fell from July 2006 until January 2007 but then rose sharply from January 2007 through June 2008. 

From there we see one of the sharpest drops in history.  Note that the fall from the 1979 peak took until 1986 (7 years) to fall as much (percentage wise) as it lost in only six months in 2009. So we see a fall from $124 in June 08 to $33 in January 09 but by June 09 it is back to $61. 

During the previous peak price back in 1979 the nominal monthly average oil price peaked at $38 per barrel (although the intraday prices spiked much higher). 

The common price quoted is for the all time  high of  Oil prices is the price that the highest barrel ever sold for. That price doesn't  really have any effect on the price consumers paid. What really matters is the average price the refineries had to pay for the whole month.

Interestingly, the highest monthly average occurred in December 1979 while the highest annual high occurred in 1980.  Which means prices spiked higher in late 1979 and then dropped slightly but overall remained at higher levels throughout 1980 than they were in 1979.

Adjusted for inflation in June  2009 dollars the 1979 $38 peak oil price is the equivalent of paying $106.86 today. (Note: This number is constantly changing as we adjust for inflation at the current moment.)

In the 2008 run-up,  the annual average price for all of 2008 was 99.65 and will conceivably be much lower in 2009. So on an annual average basis, prices were very close to 1979 but slightly below but on a monthly inflation adjusted basis 2008 prices exceeded 1979 prices but for a shorter duration.

Note: The prices we use are for Illinois Crude which will be similar but not exactly the same as the  NY Crude spot price.  Also note that during the 1970's Oil prices were subject to price controls except for "stripper" wells. These price controls resulted in shortages and lines at the gas station in addition to some shootings and even deaths due to people "cutting in the gas line".  We use the free market stripper prices which more accurately indicate what prices would have been without the artificial price controls. 

For more information see: Annual Oil Prices in Table Form.