Same Shock, Different World: Oil Prices Then and Now
Before the oil embargo in the early 1970s, the oil market had stable, low prices. Oil was plentiful and cheap, with little worry about supply or price swings. This changed dramatically in the 1970s, with a period marked by long gas lines and widespread rationing.
Macrotrends.net1 reports that in April 1973, crude oil was $3.56 a barrel, soaring to $32.50 in January 1980 ($139.12 adjusted for inflation). Earlier this year, the outbreak of war in Iran caused another surge. Specifically, crude oil was $57.26 in December 2025 and jumped to $108.64 in April 2026, according to macrotrends.net2.
A major similarity between the two eras is the role of geopolitical events in driving price volatility. At the same time, notable differences give us compelling reasons to be optimistic about the future. For instance, during the 70s, the bulk of the oil supply was controlled by only a handful of countries, so the United States and other developed nations depended heavily on cheap oil imports. Today, by contrast, the global energy market is more diversified, with the United States and other non-OPEC countries such as Canada, Mexico, and Brazil playing a larger role in global supply. Furthermore, thanks to technological advances in exploration, drilling, and automated systems over the years, the United States has emerged as the world’s leading oil producer.
What was true then and what continues to be true today is that price shocks can and still happen. Macrotrends.net3 lists the average gas price at $4.41 in April 2026, just below the inflation-adjusted $4.75 in January 1980. Seeing gas prices rise daily can be hard, especially since the average was only $3.10 in January 2026. Still, unlike in the past, we have more ways to save at the pump. Options include filling up at warehouse stations or using loyalty programs. Since the 1990s, credit cards have offered cash back on gas, and searching online or using apps makes it easy to find the lowest prices nearby. You can sometimes save more by paying in cash.
Looking ahead, these structural changes including supply diversification and continuous technological innovation are strong reasons to remain optimistic about the future. It’s worth keeping in mind that the rates of inflation and unemployment were far higher in the 70s than they are today. Finally, the advances we have made show we are much better positioned to adapt in the face of unexpected future disruptions.
1https://www.macrotrends.net/1369/crude-oil-price-history-chart
2https://www.macrotrends.net/1369/crude-oil-price-history-chart
3https://www.macrotrends.net/1369/crude-oil-price-history-chart
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