London: The premium of the first-month Brent crude futures contract to that for delivery six months later traded on Monday at a six-month high as investors priced in an increased prospect of disruption to Middle East supply.
The spread between the first Brent contract for August and the February 2026 contract , traded as high as $6.00 a barrel on Monday, the highest since January 16, after touching its highest since October 2023 at $6.95 on Friday.
By comparison, the spread traded at its lowest since December 2023 as recently as the start of May, hitting a 29 cent discount.
The shift in the structure since Friday came as investors priced in a greater geopolitical risk premium on prompt oil contracts after Israel launched strikes at targets across Iran on Friday, heightening the risk of disruptions to the region’s oil supply and exports through the Strait of Hormuz.
