The $108 oil price looks fine, until Indian refiners get the final bill

Nifty22, 780.25-360.25. Motilal Oswal Midcap Fund Direct-Growth.

Key points

• (Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.).
• The November Brent futures cost is the rate at which a standardised contract for November delivery trades in the futures market.
• The spot cost was more than $15 above the futures rate on a number of days in the latter half of the period.
• The Economic Times daily newspaper is available online now.
• As constrained Gulf supplies keep the physical market tight, india's oil refiners are paying significantly more for physical crude than the futures rates making headlines.

Nifty22, 780.25-360.25. Motilal Oswal Midcap Fund Direct-Growth. The Economic Times daily newspaper is available online now. Refiners feel heat physical crude trades higher than futures rates. Refiners feel heat physical crude trades higher than futures rates. ET BureauLast Updated: Sep 29, 2026, 12: 44: 00 AM IST.

As constrained Gulf supplies keep the physical market tight, india's oil refiners are paying significantly more for physical crude than the futures rates making headlines. Brent spot rates averaged concerning $12 a barrel above November futures between September 1 and 22, with the gap widening to as much as $22. Refiners' actual costs are driven by physical-market benchmarks, grade differentials and contract terms rather than headline futures rates alone.

India's oil refiners are facing significantly higher rates for physical crude than the futures costs dominating the headlines -around $108 a barrel on Monday-as Gulf supplies remain constrained, industry executives noted. Between September 1 and 22, the latest period for which US Energy Information Administration (EIA) spot-price data is available, Brent spot rates averaged concerning $12 a barrel above November Brent futures rates, with the gap widening by as much as $22 on September 15. The spot cost was more than $15 above the futures rate on a number of days in the latter half of the period. The EIA spot cost provides a reference for the physical Brent market, where actual crude cargoes are purchased and sold. Industry executives remarked futures costs do not reflect current conditions in the physical market, with suppliers demanding premiums of up to $20 a barrel over the futures rates. The physical market is tight, primarily since Gulf supplies remain constrained, they stated. – Gems, jewellery exporters rush to beat new US tariff deadline.

Notably, the November Brent futures cost is the rate at which a standardised contract for November delivery trades in the futures market. Most participants employ such contracts to hedge or take a view on costs rather than to take physical delivery of crude. The cost refiners pay for crude is linked to physical-market benchmarks. It are averaged over the crude's loading month for most purchases. – India has 'insulated' itself from the 'turbulence' of crude supply shock: Hardeep Singh Puri Live Events.

Meanwhile, the final cost additionally reflects a differential for the specific grade and other contractual terms. This means higher physical-market rates feed into refiners' procurement costs even when the futures costs attracting market attention are lower. Crude purchase deals are typically struck regarding two months before delivery. A cargo purchased in September, for example, may load in October and arrive at the refinery in November, with its cost determined by the physical-market benchmark averaged over the October loading month. In practice, the headline futures cost at the time of purchase, therefore, may not reflect the rate ultimately applied to calculate the refinery's crude cost. Add Now!

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For now, the $108 oil price looks fine, until Indian refiners get the final remains the part of the story worth watching, and further updates are likely as more details are confirmed.