Brent Oil Reaches US$141, Its Highest Level Since The 2008 Financial Crisis

Brent crude prices in the physical market have reached their highest level since the 2008 global financial crisis. Spot cargo prices touched US$141 per barrel on 2 April 2026 due to deep supply worries regarding disruptions near the Strait of Hormuz, one of the world's most vital oil transit routes.

Spot Prices Diverge Sharply From Futures

The main highlight of this recent rally is the wide gap between the spot and futures prices. According to reports, the premium for physical delivery (dated Brent) has even reached US$32 per barrel over the futures contract prices.

At 12:00 on 6 April 2026, the Brent Oil futures contract price was US$109.67.

While futures prices often dominate headlines, it is the spot market that reflects real-time supply-demand conditions. This unusual gap in prices is pointing to a few clear signals. There’s a shortage in the physical market right now, demand for immediate delivery has gone up, and there are concerns about how much crude is actually available. Such sharp gaps are usually seen only when supply gets really tight.

The main reason behind this is rising tension around the Strait of Hormuz, which is a critical route that handles nearly 20% of global oil supply.

Because of disruptions in this region, shipments are getting delayed, insurance and freight costs have gone up, and there’s growing fear that supply could stay tight for a while. As a result, buyers are willing to pay extra to secure oil deliveries immediately.

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Impact On The Global And Indian Economy

Rising oil prices are not limited to only one sector but directly impact the entire economy. Globally, the rise in the price of oil contributes to inflation, limits the abilities of central banks to adjust interest rates, and increases expenses related to transport and manufacturing.

For India, the impact is even bigger since the country imports over 85% of its crude oil, over 5 million barrels per day. This could mean higher fuel prices, a bigger import bill, pressure on the current account deficit, and rising inflation risks.

The effect of this sharp price increase is already visible on the stock price of leading Indian oil companies. By 12:30 on 6 April 2026, the share price of Indian Oil went down by nearly 2% and was recorded at ₹131.50. Bharat Petroleum also declined by 1.5% to ₹273.85, whereas Hindustan Petroleum decreased by 1.3% with a price of ₹321.65.

Sources:

CNBC

Financial Express