Global Oil Benchmark Brent Crude Surges to $95.47 Amid Shifting US Energy Policies

Brent crude, the international benchmark for oil, has reached $95.47 per barrel, representing a significant year-on-year surge of nearly 40%. The rise underscores ongoing volatility in global energy markets, driven by a combination of geopolitical tensions, supply constraints, and major shifts in U.S. energy policy.

At $95.47, the price of Brent crude is up $1.06 from the previous day. This represents a steep climb from $82.44 just one month ago and a dramatic increase from approximately $69 per barrel recorded a year earlier. The upward trajectory highlights the delicate balance of global supply and demand, which remains highly sensitive to geopolitical disruptions and macroeconomic shifts.

Domestically, U.S. energy policy is undergoing a major transition. In 2025, the Trump administration moved to reopen more than 1.5 million acres of the Coastal Plain within the Arctic National Wildlife Refuge for oil and gas leasing. This decision directly reversed the Biden administration’s restrictive policies on Arctic drilling. Proponents of the move argue that expanding access to domestic reserves, including vast U.S. shale formations, is critical to boosting supply and stabilizing long-term energy costs.

Historically, oil prices have been tracked using two primary benchmarks: Brent crude, which prices the majority of the world’s internationally traded physical oil, and West Texas Intermediate (WTI), the standard for North American crude. Because of its global reach, the U.S. Energy Information Administration relies on Brent as its primary reference for long-term energy outlooks. Historical data shows Brent is highly susceptible to macro-shocks, ranging from the 1973 OPEC embargo during the Yom Kippur War to the demand collapse during the 2020 COVID-19 lockdowns, which briefly dragged prices below $20 per barrel.

The surge in crude prices translates directly to higher costs at the gas pump, where crude oil typically accounts for more than half of the retail price of gasoline. However, consumers rarely see immediate relief when crude prices drop. This phenomenon, known in economics as the “rockets and feathers” effect, describes how retail fuel prices shoot up rapidly in response to rising crude costs but drift down slowly when oil prices decline.

Beyond the pump, sustained high oil prices act as a catalyst for broader inflation. Because petroleum is foundational to shipping, manufacturing, and agricultural logistics, elevated crude costs inflate the prices of everyday consumer goods. To mitigate severe supply shocks, the U.S. maintains the Strategic Petroleum Reserve, a massive emergency stockpile designed to safeguard national energy security during wars, natural disasters, or severe market disruptions.