Brent Crude Hits $95 in 2025: What Rising Oil Prices Mean for Your Gas Budget
In 2025, Brent crude oil prices have surged to a 10-month peak near $95 per barrel, signaling potential hikes in gas prices and renewed inflation concerns for consumers.
Gas prices are poised to climb as crude oil reaches its highest point since November 2023.
Brent crude, the global oil benchmark, approached $95 per barrel in early 2024, marking a significant 10-month high. Meanwhile, West Texas Intermediate (WTI), the U.S. benchmark, hovered around $92 per barrel.
Highlights to Know
- Brent crude prices have surged nearly 40% since late June 2023, driven by OPEC+ production cuts and strong global demand.
- Consumers may face increased costs at gas stations, with the national average for unleaded gasoline already $3.88 per gallon—20 cents higher than last year.
- Higher energy costs could push inflation rates upward, particularly impacting the Consumer Price Index (CPI), though core inflation excluding volatile energy and food prices may remain stable.
The rise in crude oil prices stems from coordinated supply reductions by OPEC and its allies, including Saudi Arabia and Russia, who have collectively cut production by up to 2.5 million barrels per day in 2024. Saudi Arabia has extended its production cuts through December to maintain price support.
China's economic rebound following pandemic restrictions and resilient U.S. consumer spending have further contributed to the upward price momentum.
After reaching record highs amid geopolitical tensions in 2022, oil prices dipped earlier this year but have since rallied strongly, underscoring ongoing volatility in the energy market.
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