WTI crude oil futures rise above $109 per barrel, up 8.92% intraday.

WTI crude oil futures rose above $109 per barrel on April 2, 2026, marking an intraday increase of 8.92%. The surge reflects heightened concerns over global oil supply disruptions, particularly in the Persian Gulf, where tensions between Iran and the U.S. continue to escalate. Iran's assertion of control over the Strait of Hormuz has raised fears of prolonged disruptions to a critical oil transit route, which accounts for approximately 20% of global oil exports.

The physical crude oil market has also shown signs of severe supply stress, with Asian refiners paying record premiums for Norwegian and U.S. crude. For instance, Norwegian Johan Sverdrup crude is trading at a premium of $11.80 per barrel over Brent, a record high. These premiums indicate that buyers are willing to pay significantly more to secure supply, highlighting a structural shortage that is not fully reflected in futures prices.

U.S. crude oil production has increased year-over-year, but exports have declined by 3% compared to the same period in 2025. This paradox underscores the strong domestic demand for crude, driven by high refinery utilization rates and elevated crack spreads. As a result, U.S. crude is increasingly being consumed domestically rather than exported, further tightening global supply.

Analysts warn that the current supply challenges are not easily resolvable. Norway, a key supplier of light sweet crude to Asia, is operating at maximum capacity and has no spare production capability. Meanwhile, U.S. shale producers, while increasing drilling activity, are constrained by capital discipline and supply chain bottlenecks, limiting their ability to rapidly boost output.

The combination of geopolitical tensions, constrained supply, and strong demand has pushed oil prices to levels not seen in years. With the market still assessing the full impact of these developments, the path forward remains uncertain, and volatility is expected to persist.