September Brent futures trade at an $8 premium to six-month contracts, reflecting near-term supply concerns amid regional conflicts.
Brent crude futures entered backwardation this week, with the September contract priced at $85.79 per barrel, $8 above the six-month forward contract at $77.49. The shift signals tightening prompt supply expectations for the first time in a month.
The move follows escalating Middle East hostilities, reduced tanker traffic through the Strait of Hormuz, and the reinstatement of a U.S. naval blockade on Iranian oil exports. Prior to this, the Brent curve had been in contango since early June.
Market participants are pricing in heightened geopolitical risks, though no immediate price reaction was reported in early trading.