(Investing) – Physical crude oil prices in the Middle East, Europe and Africa rose this week to two-month highs, with some approaching $110 per barrel. Supply disruptions linked to conflicts in Iran and Ukraine left buyers searching for alternative sources.
Dated Brent, the global oil price benchmark used to price over 60% of the world’s physical crude cargoes, reached $105.70 per barrel on Thursday, according to LSEG data. This marked its highest level since late May and the first time it crossed $100 since early June. North Sea Forties crude, priced against Brent, climbed to $108.77 on Friday.
Yemen’s Iran-aligned Houthis attacked tankers in the Red Sea this week, forcing some Saudi shipments to reroute around Africa. The attacks followed the collapse of a preliminary U.S.-Iran peace deal and increased disruption to exports through the Strait of Hormuz.
Kazakhstan announced Thursday it had reduced oil production after suspected Ukrainian drone attacks forced the closure of its main export terminal for CPC Blend crude on the Black Sea.
Spot premiums for Middle East benchmark Dubai to swaps doubled on Thursday to $12.74 per barrel, while Oman’s premium climbed to $12.62, Reuters data showed. Both premiums reached their highest levels since the end of May.
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