By THE ALASKA STORY
Alaska North Slope crude has surged past $120 per barrel, a level not seen since prices spiked during the Biden presidency, when the benchmark briefly reached roughly $127 per barrel during the Ukraine-Russia conflict. The current move comes amid escalating global supply disruptions tied to Middle East conflict and the de facto closure of the Strait of Hormuz, according to new analysis from the US Energy Information Administration.
The price spike reflects a dramatic shift in global oil markets during the first quarter of 2026. Brent crude began the year near $61 per barrel and ended the quarter at $118, marking the largest inflation-adjusted quarterly increase in data going back to 1988. As geopolitical risk intensified in January and February, prices climbed gradually into the low $70s. But after military action in the Middle East on Feb. 28 and threats to shipping through the Strait of Hormuz, prices accelerated sharply.
Shipping traffic through the strait, one of the world’s most critical oil chokepoints, effectively halted as vessels faced the risk of Iranian attacks. In response, several Middle Eastern producers, including Iraq, Saudi Arabia, and the United Arab Emirates, shut in production. Attacks on energy infrastructure and fears of further escalation added additional upward pressure.
By March 12, Brent crude had crossed $100 per barrel and continued climbing throughout the month. The widening disruption also caused a sharp divergence between global benchmarks. The spread between Brent and West Texas Intermediate widened from roughly $4 per barrel at the start of the quarter to as high as $25 by March 31, the widest gap in more than five years. Strong US inventories and plans to release crude from the Strategic Petroleum Reserve helped limit WTI gains compared to Brent, which is more directly exposed to global shipping constraints.
Alaska North Slope crude typically tracks Brent more closely than WTI, meaning global supply disruptions often translate more directly into higher prices for Alaska oil and higher revenue for the state treasury. Every sustained increase in oil prices significantly boosts Alaska’s unrestricted general fund revenue, which remains heavily dependent on petroleum production taxes and royalties.
The spike also carries downstream consequences. As crude prices climbed, gasoline, diesel, and jet fuel prices followed. By March 30, the US average gasoline price reached $3.99 per gallon and diesel hit $5.40, the highest inflation-adjusted levels in more than two years. Higher crude oil costs are typically the largest driver of refined fuel prices. Alaska prices are already much higher.
4 thoughts on “Oil prices surge, with Alaska North Slope crude over $120 a barrel”
If Alaska since 2012 lived under budget and smaller government, Every Eligible Alaska who filed for a PFD would had received a Full dividend this year.
Just to remind anyone Reality how government dependent Alaskans are that people would rather this money given to government employees and non profits instead of spread over all the people
Why should Alaska North Slope crude oil price be linked to oil shipping, or lack thereof, through the Strait of Hormuz, ten thousand miles away?
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What does it take to de-link Alaska North Slope crude oil price from the price of oil shipping through the Strait of Hormuz?
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Seems like this would matter when the LNG pipeline is finally moving gas and the sand fleas blow up a gas pipe on the other side of the planet, somehow causing the price of Alaska’s LNG to triple in the middle of winter for no apparent reason other than industry owners and government regulators can do it and get away with it.
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Speak up, LNG pipeline cheerleaders, now’s your time to shine, what do you have to say for yourselves?
Its all sold on the same global market. Drop in supply at one end reduces net inflow for the entire market. Less supply, no matter the source, increases price. Just like every time OPEC gets greedy and cuts,production to jack up the price
Alaskan oil extracted and refined in Alaska that’s sold in Alaska has to be sold at price-gouging levels because it’s all part of the same global market and to be fair, Alaskans oughtta be stiffed with the same price-gouging as our Lower 48 neighbors running on Lower 48 extracted and refined oil?
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Why? What exactly are Alaskans buying for that extra money?
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Let’s say hell just froze over, now you’re running the show. Options seem to be price gouging at one extreme, price controls like those which caused the 70’s oil “crisis” at the other extreme, what’s in the middle?
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Alaska’s LNG line starts moving gas, everyone’s hooked up to it, a captive audience if ever there was one.
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Seriously, sand fleas blow up a gas line halfway around the world, so Alaska gas prices absolutely must double, triple in the middle of winter, what’s the plan, Guv?