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Economy
European and Asian oil refineries are paying record-high prices approaching $150 per barrel in spot transactions for some types of crude oil.
Prices far exceeding futures prices, highlighting the worsening supply crisis caused by the US-Israeli war against Iran.
The Iran war has disrupted the flow of at least 12 million barrels per day — about 12% of global supplies — from the Middle East after Iran effectively closed the Strait of Hormuz. As a result, Brent crude futures reached $119.50 last month, the highest level since 2022, though still below the all-time record of $147.50 set in 2008. The nearest Brent contract will be for June delivery.
Competition among Asian and European refineries to secure supplies, to compensate for reduced Middle Eastern oil flows, has driven up the price of alternative crude designated for immediate delivery, particularly in Europe and Africa.
As a result, spot prices for some crude grades hit record highs. Data from the London Stock Exchange Group showed that the spot price of North Sea Forties crude reached $146.09 on Tuesday, an all-time record surpassing even the 2008 level.
Oil trader Adi Imsirovic said the main driver for oil prices such as Forties crude is "worry" about supplies. He added: "When there is a real and tangible shortage, people don't think about July deliveries — they think about oil prices now."
Morgan Stanley analysts said in a report: "At the moment, the market is racing against the clock to get usable barrels to refineries immediately."
