Apr. 2 at 2:23 PM
WTI futures, the US benchmark, jumped +12% to
$112.24, while Brent crude futures rose +7.8% to
$109
It would be the 1st time WTI futures have closed above Brent futures since May 2022
WTI market is still trading the May contract as the soonest delivery month, while the Brent market has already rolled over to June. Because traders still aren't sure how long the war will last, they're pricing in more supply disruption in May than in June
Just 2 weeks ago, WTI was trading at nearly a
$20 discount to Brent crude in intraday trading. Geography played a part in that -- with markets closer to the action reacting with bigger price jumps -- while speculation over potential US export restrictions also helped
Unfortunately, President Trump messy speech didn't help - he said "Iran no longer a threat" & "the US's core strategic operations were nearing completion" but "the military is going to hit Iran "extremely hard" in next 2-3 weeks
$USO $BNO $XLE $UGA $OIH