Brent oil spot price above $120 as ceasefire fails to solve deep disruption The price for actual Brent oil cargos surpassed $120 per barrel on Wednesday, nearly $30 higher than the June futures contract. This surge highlights the persistent tightness in global oil supplies, even as the U.S.-Iran ceasefire agreement remains in place. Analysts emphasize that restoring full oil flows will take months, regardless of the ceasefire’s success. The spot price for Brent crude oil reached $124.68 per barrel on Wednesday, signaling that the ceasefire is unlikely to resolve the deep supply disruptions caused by the five-week war. The spot price reflects immediate market conditions for oil deliveries within the next 10 to 30 days, contrasting with futures contracts for June and beyond. Despite a $19.75 drop in the spot price following the two-week ceasefire agreement between the U.S. and Iran, it remains $30 above the June futures contract, which closed at $94.75. This discrepancy underscores the ongoing scarcity of oil supplies, as analysts argue that the market is still grappling with the aftermath of the conflict. Amrita Sen, founder of Energy Aspects, explained that the spot price captures the real-world situation, including the shutdown of 13 million barrels per day of Middle East production due to a dramatic decline in tanker traffic through the Strait of Hormuz. Most tankers are now diverting to the U.S. to pick up oil, according to Sen, who noted that redirecting ships back to the Middle East could take until June. “It’s a complete mess,” Sen told CNBC’s “The Exchange,” highlighting the chaotic state of global oil logistics. Amena Bakr, an expert on the Middle East and OPEC at Kpler, added that hundreds of millions of barrels of oil have been removed from the market due to the war.#brent_oil #kpler #us_iran_ceasefire #amrita_sen #kuwait_petroleum_corporation
