Why Brent crude trades above WTI in global oil markets

Brent trades above WTI due to global benchmark status, offshore access and geopolitical sensitivity. In 2011, Brent premium widened to nearly $25 per barrel as US shale oversupply hit WTI. In 2026, Strait of Hormuz tensions again lifted Brent faster. Higher Brent directly raises import costs for countries like India.