European and African Crude Oil Prices Hit Record Levels Amid Supply Disruptions
European and African crude oil prices surged to record highs on Wednesday, even as global oil futures fell sharply following a reported ceasefire between the United States and Iran.
Benchmark crude contracts, including Brent and West Texas Intermediate (WTI), dropped significantly as investors reacted to expectations of reduced geopolitical risk and the possible reopening of key supply routes such as the Strait of Hormuz.
However, physical crude markets moved in the opposite direction, with prices rising due to ongoing supply constraints and strong demand for non-Middle East crude grades.
North Sea crude grades, including Forties, reached record levels, reflecting tight availability and strong refinery demand in Europe and Asia. Market data showed that prompt crude cargoes are commanding unusually high premiums compared to futures prices.
Analysts say the gap between physical and futures markets highlights continued uncertainty in global supply chains. Some industry experts expect disruptions to persist for months, as energy producers remain cautious about restarting operations amid ongoing risks.
Consulting firms noted that even a temporary ceasefire may not immediately restore normal production or shipping flows, as companies avoid restarting facilities without longer-term stability.
Other crude benchmarks, including West African grades such as Cabinda, also saw record premiums, driven by strong demand for alternative supply sources.
The divergence between physical and paper markets reflects broader concerns about supply security and regional instability affecting global energy trade.
