Brent crude tops $102 as Middle East supply risks widen price gap

Global oil benchmarks diverged in early trading on Monday, 5 October, as Brent crude climbed above $102 per barrel while US West Texas Intermediate (WTI) edged lower. The price split follows heightened security threats near the Strait of Hormuz, which have widened the risk premium for seaborne crude supplies destined for Asian markets. Benchmark performance and price gaps Brent crude rose 6 cents, or 0.07%, to reach $102.31 per barrel by 8:37 am Tokyo time, according to data from Trading Economics. Simultaneously, Abu Dhabi’s Murban crude jumped $1.42, or 1.30%, to trade at $110.80 per barrel. In contrast, the US benchmark WTI slipped 2 cents to $90.77, while natural gas prices fell 0.79% to $3.011. The price gap between Brent and WTI has now widened to more than $11 per barrel. Market data indicates this spread is driven by the specific exposure of international seaborne grades to maritime disruptions, compared to the relatively insulated US domestic supply chain. Supply route risks and shipping costs The upward pressure on Gulf benchmarks comes as logistics costs for crude transport escalate. Ongoing uncertainty regarding Middle East supply routes has triggered a surge in Very Large Crude Carrier (VLCC) freight rates. Refiners are currently facing higher delivered costs due to a combination of tanker shortages, increased insurance premiums, and the necessity of longer voyages to avoid high-risk zones. Prices reached these levels on Monday, 5 October, following a period of…