Brent Oil Spot Price Hits $141, Highest Since 2008 Crisis Amid Supply Disruptions

The spot price for immediate physical cargoes of Brent crude oil reached $141.36 on Thursday, marking the highest level since the 2008 financial crisis, according to S&P Global. This price reflects demand for oil deliveries expected within the next 10 to 30 days, highlighting the current physical supply constraints. The spot price is $32.33 higher than the June Brent crude futures contract, which closed at $109.03 on Thursday. Amrita Sen, founder of Energy Aspects, noted in an interview with CNBC's 'The Exchange' that the futures price may be misleading, suggesting a false sense of security. 'You are seeing it but the financial market is almost masking the true tightness that everywhere else is showing up,' Sen said. The situation is further exacerbated by the closure of the Strait of Hormuz, which has caused significant disruptions in oil supply. Chevron CEO Mike Wirth warned last week that the futures market is not adequately reflecting the scale of the disruption. 'There are very real, physical manifestations of the closure of the Strait of Hormuz that are working their way around the world and through the system that I don't think are fully priced into the futures curves on oil,' Wirth stated at the CERAWeek by S&P Global energy conference in Houston on March 23. The price for a barrel of diesel in Europe is currently nearly $200, underscoring the immediate impact of the supply issues.

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