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.
One thought 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