Brent and WTI Oil Price Gap Widened to $13.85
Escalating shipping costs have pushed the price spread between Brent and West Texas Intermediate to a significant new high.
Updated on Oct. 14, 2026 in Oil and Gas
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The price gap between Brent crude and West Texas Intermediate widened to $13.85 on Monday, driven by soaring maritime freight rates. Increased shipping costs and insurance premiums have hampered the ability of US crude exports to narrow this benchmark price differential.
Why it matters
Rising tensions in the Middle East have disrupted key shipping routes, making it significantly more expensive to move oil globally. This shift effectively traps US oil at inland hubs, preventing it from balancing international markets that face much higher costs.
Brent futures traded between $106 and $107 per barrel, while WTI remained near $94 to $95. Freight costs from the Persian Gulf have surged from $1.73 per barrel in January to $33 recently.
The players
Donald Trump
The President of the United States who recently announced an energy truce between Russia and Ukraine.
Goldman Sachs
A global financial institution that provides market projections and economic analysis for energy commodities.
US Energy Information Administration
A federal agency that monitors energy data and provides long-term forecasts for oil market trends.
The details
Brent is priced on seaborne barrels, forcing its cost to incorporate expensive maritime shipping and insurance, whereas inland WTI at Cushing, Oklahoma, largely avoids these fees. Consequently, a supertanker voyage from the US Gulf to China currently incurs a cost of about $40 per barrel.
Timeline
January 2026: Persian Gulf freight costs were $1.73 per barrel.
March 2026: WTI discount hit $12.63.
July 2026: The Brent-WTI price gap was about $4.
October 12, 2026: The Brent-WTI price gap reached $13.85.
October 14, 2026: Article publication date.
Market Landscape
The current benchmark spread reflects a substantial deviation from the US Energy Information Administration's fourth-quarter forecast of a $7.70 gap. This divergence illustrates how geopolitical volatility in the Middle East has disrupted established global trade flows and pricing models.
The increased cost of shipping oil globally may contribute to higher fuel and energy prices for international consumers. Persistent price gaps could also pressure global refinery margins, potentially influencing the availability of specific refined products.
The takeaway
The extreme price gap between Brent and WTI highlights how vulnerable energy markets remain to maritime shipping disruptions. Investors and consumers should note that geography and freight costs currently carry as much weight in pricing as raw production levels.
What happens next
Traders are monitoring the situation through October 31, 2026, amid a 2% estimated probability of a US diesel export ban.
Further reading
Find more analysis on market trends in our Oil and Gas section.
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