Historical Crude Oil Prices (Chart)

See Annual Averages in Table Form
This Chart presents Monthly Average Prices

The above chart shows oil prices adjusted for inflation in December 2008 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 through November 2007 with a slight decline in December.

When prices are adjusted for inflation the real peak price occurred back in 1979. At that time the monthly average 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.

Note that 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. 

Adjusted for inflation in January 2007 dollars the 1979 $38 peak is the equivalent of paying $104.06 today. (Note: This number is constantly changing as we adjust for inflation at the current moment.)

In other words, Oil would have to average $104.06  for the entire month to be as high as the price we saw in December of 1979.  Recent, intraday highs have gotten near that but the monthly average is still about 20% below that.

For more information on how we got to this point in our Oil prices see the article Why Oil Prices haven't Crippled the US Economy Yet  or Oil Prices in Table Form.