Physical oil prices hit record highs amid Hormuz crisis

European and Asian refiners are paying record-high ⁠prices of near $150 a barrel for some crude oil grades, far exceeding prices for paper futures, highlighting the worsening supply crisis from the US-Israel war on Iran.

The war has forced the shutdown of ⁠at least 12 million barrels per day – about 12 percent of world supply – from the Middle East due to Iran’s effective closure of the Strait of Hormuz.

As a result, Brent oil futures reached $119.50 a barrel last month, the highest since 2022, although still short of the 2008 record high of $147.50. The nearby Brent contract is for June delivery.

Competition for supply from Asian and European refiners to replace disrupted Middle Eastern oil flows has helped drive up prices of replacement crudes for more immediate delivery, such as those in Europe and Africa.

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