The price of some physical oil cargoes in Europe reached over $130 per barrel on Tuesday (September 24) due to increasing supply disruptions in Middle Eastern oil. This price increase is approaching its highest level since April, when the effects of the U.S. and Israeli regime's war against Iran and other factors became evident in the oil market.
Disruptions Caused by War and Saudi Arabia's Decisions
Trade sources reported that due to disruptions caused by the U.S. and Israeli regime's war against Iran, Saudi Arabia has canceled oil cargo deliveries to European buyers for late September. This decision was made following last week's attack on the East-West pipeline in Saudi Arabia, which halted oil loading from the important port of Yanbu in the Red Sea. These disruptions, particularly in the Middle Eastern oil market, have led to price increases in global markets.
Read more: Saudi Aramco's Withdrawal from Crude Oil Delivery to European Refiners
Increase in North Sea Oil Prices
In this context, buyers reported that the prices of alternative oil options, including North Sea oil, also increased on Tuesday. According to data from the London Stock Exchange financial group, the price of Forties crude oil from the North Sea reached $136.75 per barrel, approaching the nearest recorded price of $147.37 on April 13. This price increase indicates a rise in demand for alternative oil due to disruptions in Middle Eastern oil supply.
The prices of physical oil cargoes, including Brent crude, are higher than the prices of their futures contracts. This price difference is due to the fact that physical cargo deliveries will occur in the coming weeks, while the crude oil traded in futures markets has a longer delivery date. The nearest delivery date for Brent oil is in November, which could lead to further price increases.
Overall, the current state of the oil market, especially considering the disruptions caused by political and military developments in the Middle East, has had a significant impact on global oil prices, and this trend is expected to continue in the near future. Market analysts believe that if the current conditions persist, prices may rise to new levels, putting further pressure on the oil market.
Read more: Cheniere Energy Completes Corpus Christi LNG Development Project · Ukraine Attacks Sizran Refinery in the Volga Region
