Brent Crude Oil Spot Price Tops $140, Highest in 18 Years

[The Financial News]

The spot price of Brent Crude Oil has surpassed $140 per barrel. This is the highest level in 18 years, since the global financial crisis in 2008.
Consumer News and Business Channel (CNBC) reported on the 2nd (local time), citing data from Standard & Poor's (S&P) Global, that the spot price of Brent loaded onto tankers surged to as high as $141.36 per barrel that day.
The Brent spot price is determined by reflecting demand for crude oil scheduled to be shipped within the next 10 to 30 days.
This is about 30% higher than the settlement price of $109.04 for June delivery, which is the nearest-month futures contract.
Oil prices could ease to around $109 by June if geopolitical tensions from the war involving Iran subside. However, for now the market believes there is an absolute shortage of oil due to supply disruptions caused by the closure of the Strait of Hormuz.
Amrita Sen, co-founder of energy consulting firm Energy Aspects, argued that the futures price curve is distorted. She told CNBC, "Futures price movements are reflecting a misguided perception of the security situation," adding, "The futures market is misjudging the severity of the pressure on supply chains."
She also noted that diesel prices in Europe are currently approaching $200 per barrel.
Previously, Mike Wirth, chairman and chief executive officer (CEO) of Chevron, also warned that futures prices are failing to fully reflect the scale of supply disruptions caused by the closure of the Strait of Hormuz. Wirth pointed out that the market is currently moving on "thin information" and a vague "perception."

dympna@fnnews.com Song Kyung-jae Reporter