Crude: Prompt, Light Oil Helps Reshore European Supply

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Vitaly Timkiv/Sputnik via AP

The physical crude market is ebullient again, with Brent now trading August barrels as the July spot volumes are being loaded. In the North Sea, the benchmark streams are all back on line after maintenance at the Ekofisk field last month. The surge in summer demand and tight product supply have reshaped the dated Brent structure into steep backwardation. Libya’s 1.3 million barrel per day outage is shrinking availability in Europe’s short-haul sweet market. Strong margins are incentivizing refiners to run more crude to catch up with demand. As a result, the refining market (FISHACROSS) is driving crude prices through the roof.

Crude Oil, Oil Spot Markets, Oil Supply, Oil Prices
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