Crude oil is a naturally occurring, unrefined fossil fuel composed of hydrocarbons. It serves as a primary energy source and a critical input for fuels such as gasoline, diesel, and jet fuel, as well as for a wide range of petrochemical products. The two main global benchmarks are West Texas Intermediate (WTI), which reflects U.S. market conditions, and Brent crude, the leading international reference sourced from the North Sea. Oil prices both influence and are influenced by political developments: they affect inflation, fiscal stability, and trade balances, while policies, conflicts, and production agreements can directly alter supply and price levels. Learn more

In August 2026, crude oil prices showed a notable divergence between the two major benchmarks. As shown in Figure 1 and Table 1, Brent crude averaged $91.81 per barrel, with a monthly range from $87.62 to $96.92. The month began at $88.90 and ended at $89.75, a modest increase of 0.96 percent. WTI averaged $84.65 per barrel, ranging from $79.77 to $87.21. WTI opened at $81.96 and closed at $87.03, a stronger gain of 6.19 percent. Volatility was relatively low for both benchmarks, with Brent at 2.92 and WTI at 2.20, indicating a calmer trading environment compared with the sharp swings seen earlier in the summer.

Compared with July 2026, August marked a significant stabilization. In July, Brent had averaged $83.92 but with extreme volatility of 11.44, driven by a price surge from $68.68 at the start of the month to $96.95 by the end. WTI similarly jumped from $69.60 to $86.16, with volatility of 7.32. In August, Brent’s average rose by $7.89 per barrel, while WTI’s average increased by $3.25. However, the most striking change was the collapse in volatility: Brent’s volatility fell from 11.44 to 2.92, and WTI’s from 7.32 to 2.20. This suggests that the sharp upward repricing in July gave way to a more settled, range-bound market in August, with prices consolidating at higher levels.

Over the past 12 months, August 2026 stands out as a period of elevated prices. Brent’s average of $91.81 was the highest monthly average in the entire dataset, exceeding the previous peak of $83.92 in July 2026 and far above the 12-month low of $62.46 in December 2025. WTI’s average of $84.65 was also the highest monthly average, surpassing the prior high of $81.40 in July 2026 and well above the low of $57.90 in December 2025. The annual trend shows a gradual recovery from the lows of late 2025, with a sharp acceleration in July and August 2026. August’s low volatility, combined with its high average price, suggests that the market may be establishing a new, higher trading range after the earlier period of subdued prices.