Economy 4 min read By Callum Montgomery
Brent Crude Tops $112 a Barrel as Oil Prices Surge 84% Year on Year
Brent crude traded at $112.85 a barrel, up $2.75 from the previous day and roughly $51.60 higher than a year ago, as supply and demand pressures keep energy markets tight.
Brent crude oil was trading at $112.85 a barrel, up $2.75 from the previous morning and about $51.60 higher than a year ago, according to benchmark pricing. The rise represents a 2.49% daily gain and an 84.24% increase over the past 12 months, underscoring how sharply energy costs have climbed for businesses and households alike.
The benchmark stood at $110.10 a day earlier and $104.25 a month ago, meaning prices have risen 8.24% in just four weeks. Brent is the main global oil benchmark, pricing a large share of the world’s traded crude, and is used by the U.S. Energy Information Administration as its primary reference in the Annual Energy Outlook. West Texas Intermediate serves as the main North American benchmark, but Brent offers a clearer picture of global market conditions.
Oil prices are driven at their core by supply and demand, but geopolitics, decisions by OPEC+ and expectations about future supply can move the market quickly. Risks such as a potential recession or war can change direction sharply, and futures markets update prices constantly while open. In the U.S., policy toward drilling also influences prices by affecting future supply. The Trump administration moved in 2025 to reopen more than 1.5 million acres in the Coastal Plain of the Arctic National Wildlife Refuge for oil and gas leasing, reversing the previous administration’s restrictions.
Higher crude costs feed through to the pump, though not immediately or evenly. The price of petrol covers refining, wholesale, taxes and retailer margins, but crude oil typically makes up more than half the cost per gallon. When oil jumps, pump prices usually follow, while falls tend to pass through more slowly — a pattern known as «rockets and feathers».
The U.S. Strategic Petroleum Reserve provides a backup supply for emergencies such as sanctions, storm damage or war, and can cushion supply shocks that send prices soaring. It is not designed to solve long-term problems but offers quick relief to consumers and keeps essential industries, emergency services and public transit moving.
Oil and natural gas prices are also linked. A sustained rise in oil can push some industries to switch to natural gas where possible, increasing demand for gas. More broadly, expensive oil raises costs across the economy, from heating and utilities to shipping and logistics, which can feed into the price of everyday goods on shop shelves.
History shows oil is far from stable. The early 1970s brought the first major shock when Middle Eastern producers cut exports and embargoed the U.S. and others during the Yom Kippur War. Prices fell in the mid-1980s as demand weakened and non-OPEC producers entered the market, then surged in 2008 before crashing with the global financial crisis. During the 2020 Covid lockdowns, demand collapsed and prices fell below $20 a barrel.
For British businesses, the latest level adds to pressure on transport, manufacturing and energy-intensive sectors already managing volatile input costs. Consumers face higher costs at the pump and in utility bills, while policymakers watch oil closely as a driver of inflation. With prices up more than 84% year on year, the market remains sensitive to supply disruptions and geopolitical risk.
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