Oil Supplies Stall as Asian Refiners Scramble for Alternatives

Prices for physical crude oil deliveries in the Middle East, Europe and Africa rose to two-month highs, with some grades trading at nearly $97 a barrel. The market is reacting to supply disruptions caused by escalating conflicts around Iran and Ukraine.

Brent crude, the benchmark for physical deliveries, rose to $105.70 a barrel, while North Sea Forties crude with $108.77 is approaching the $110 mark.

The situation was worsened by attacks by Yemen's Houthis on tankers in the Red Sea, which forced some ships to change course, as well as a disruption to Kazakh oil exports following suspected Ukrainian drone attacks on a terminal on the Black Sea.

Saudi Arabia is therefore rerouting part of its exports through the Egyptian port of Sidi Kerir. Meanwhile, refineries in Japan and South Korea are urgently seeking alternative supplies, which is also driving up prices for North Sea and West African crude.

(Reuters, mja)