The spot price for a live cargo of Brent crude soared to $141.36 on Thursday, its highest level since the 2008 financial crisis, according to S&P Global, which tracks the data.
Spot prices reflect demand for Brent crude oil for delivery within the next 10 to 30 days. The high price to pay for more immediate oil supplies shows that physical supplies are currently tight due to the massive disruption caused by Iran’s closure of the Strait of Hormuz.
Price was $32.33 more brent crude oil futures The contract for June delivery ended Thursday at $109.03.
Amrita Sen, founder of Energy Aspects, said in an interview with CNBC’s “The Exchange” that futures prices “seem to give a false sense of security that things are not that stressful.”
“You’re all seeing it, but financial markets are largely masking the real strain that’s showing up everywhere else,” Sen said. He said the price of diesel in Europe is currently around $200 per barrel.
chevron Chief Executive Officer Mike Wirth warned last week that futures prices do not reflect the scale of oil supply disruption caused by the Channel closure. Mr Wirth said the market was trading on “poor information” and “perceptions”.
“There are very real, physical signs of a Strait of Hormuz closure moving around the world and through the system, but I don’t think this is fully factored into the oil futures curve,” Wirth said at the S&P Global Energy Conference Sela Week in Houston on March 23.
