Alaska Oil Averages $122.21 a Barrel in October

North Slope crude hit its fifth-highest nominal monthly average on record, pushed up by the Iran war and tight global supply.

Updated on Nov. 3, 2026 in Oil and Gas

Wide photograph of flat Arctic tundra under a pale northern sky, with a single elevated steel pipeline running across the middle distance toward a distant storage tank. — Alaska North Slope crude averaged $122.21 a barrel in October, the state's fifth-highest monthly price on record, as the Iran war tightened global supply. AI Illustration. Upload story photo >

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Alaska North Slope crude averaged $122.21 per barrel in October 2026, according to the state Department of Revenue. The price was the fifth-highest nominal monthly average on record, behind only three months in 2008 and March 2012.

Why it matters

Oil revenue typically pays for about one-third of Alaska's annual general-purpose spending, so sustained high prices directly shape state finances. The Iran war has driven prices upward through most of 2026, and refiners are paying a premium for crude that avoids high-risk shipping routes.

The North Slope averaged 524,446 barrels per day in October, while Strait of Hormuz shipments ran about 25% below prewar levels. Adjusted for inflation, the October average ranks considerably lower than its nominal ranking suggests.

The players

Alaska Department of Revenue

The Alaska state agency that calculates monthly North Slope crude prices and forecasts the state's oil revenue.

The details

The state's monthly figure comes from published price data that the Department of Revenue uses to calculate the average. Buyers paid an average of $13.91 more per barrel for North Slope oil than for Brent crude in October, as refiners sought supply that avoids high-risk shipping routes. Chinese oil demand has rebounded, keeping prices persistently high.

July 1, 2026: Fiscal Year 2027 begins, running through June 30, 2027.
October 2026: The $122.21 per-barrel monthly average is recorded.
November 3, 2026: The state publishes October price figures.

Market Dynamics

The October average ranks fifth-highest in nominal terms, behind only three months in 2008 and March 2012. Adjusted for inflation, the figure falls significantly lower, which places the current spike below those earlier peaks.

When state legislators reconvene in January, higher oil prices could mean more money for state services and the Permanent Fund dividend. Prices have run well above the state's forecast since July, so budget planning may be revisited.

The takeaway

Alaska's budget is closely tied to global crude prices, so Alaskans should watch how Middle East tensions and shipping disruptions affect state revenue heading into the next legislative session.