"The world's most important spot crude oil price" soared above $140 for the first time since 2008!

# English Translation

By Bao Yilong, Zhao Ying

Source: Wall Street News

The Strait of Hormuz has been blocked for over a month, and combined with Trump's hawkish remarks that dashed hopes of a ceasefire, the global oil market is experiencing its most severe shock in 18 years. **Dated Brent** crude soared to **$141.37** a barrel, the highest since 2008; WTI surged **13.8%** in a single day, and the front-month spread widened to a record **over $16**. The International Energy Agency (IEA) has labeled this "the most severe supply shock in oil market history," casting a dual shadow of inflation and recession over global markets.

With the Strait of Hormuz closed for more than a month and Trump's tough speech shattering market expectations of an imminent end to hostilities, the global physical crude market is undergoing its sharpest price shock in over 18 years.

On April 2, **Dated Brent** crude hit **$141.37** per barrel, its highest level since 2008, jumping sharply from the previous day's level of over $128 and surpassing the peak seen during the 2022 Russia-Ukraine conflict.

Meanwhile, the May WTI crude contract rose as much as **13.8%** in a single day, with U.S. crude settling above **$110** a barrel for the first time since 2022.

Trump's nationally televised address struck a hardline tone, triggering a rapid short-covering reversal by market bears betting on a quick end to the conflict—acting as the immediate catalyst for the oil price surge. The IEA has classified the crisis as "the most severe supply shock in oil market history," with its duration still highly uncertain.

## Sharply Widening Gap Between Physical and Futures Prices

**Dated Brent** is one of the world's most important crude oil pricing benchmarks, underpinning roughly two-thirds of global physical crude trade. Unlike **Brent futures** traded on the Intercontinental Exchange (ICE), Dated Brent reflects the actual transaction price of North Sea crude for immediate loading—i.e., physical cargoes with fixed shipment dates.

On Thursday, Dated Brent climbed to **$141.37**, while Brent futures traded around **$107** the same day, creating an extraordinary price divergence. This gap stems from fundamentally different pricing logics between physical and futures markets: the former directly reflects the scarcity of deliverable barrels available now, while the latter is dominated by financial trading, pricing "paper barrels" rather than physical oil.

**Backwardation** in the North Sea spot market has surged to record highs in recent days, with traders scrambling to bid for every available cargo—this is the core force propelling Dated Brent prices to detach from futures and surge higher.

## WTI Front-Month Spread Hits Record, Near-Term Supply Strains Intensify

Tightness signals in the U.S. crude market have simultaneously spiked sharply. The **WTI front-month calendar spread**—the price difference between the two nearest-expiring contracts—widened to **over $16** per barrel on Thursday, the largest premium on record.

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