Brent Oil Time Spreads

Brent Oil Time Spreads Update

The Brent crude oil time spread (2nd to 3rd front-month futures) has collapsed to its lowest level since early March.

Key context:

• The market is pricing in expectations that the Strait of Hormuz could reopen, reducing geopolitical risk premium
• Despite the sharp drop in spreads, the oil market remains in significant backwardation

This development suggests easing supply concerns and potential downward pressure on energy prices in the near term.

For crypto: Lower oil prices + reduced geopolitical tension often support a stronger USD and risk-off flows in the short term.