Shipping Disruptions Raise Crude and Diesel Prices
-
Disruptions to shipping in Red Sea and Suez Canal raising prices of African and U.S. crude grades, expanding Brent crude backwardation.
-
Europe buying more U.S. and West African crude due to shorter, safer routes; driving up prices.
-
Diesel supply also tight in Europe, partly due to shipping disruptions and lower refining capacity.
-
Prompt Brent time spread suggests market is tightening, with potential small deficit this quarter.
-
Near-term crude price outlook could be more supportive than sentiment suggests if OPEC+ keeps production constrained.