Friday 17 May 2019

Physical Oil Traders Are Clamoring for Barrels as Risks Multiply - Bloomberg

Physical Oil Traders Are Clamoring for Barrels as Risks Multiply - Bloomberg:

From Colombia to the North Sea, the Middle East to Texas, the global market for crude cargoes is becoming tighter by the week as supplies grow more constrained and risks to production spiral.

Prices for actual barrels from the North Sea, Asia, and the Americas are now trading at the highest in half a decade. Key price spreads that show how urgently oil refineries need benchmark Brent barrels are soaring.

It’s little wonder: as the list of known supply curbs and disruptions grows, traders are now also having to contend with mounting tensions in the Persian Gulf, the world’s largest export region. On Tuesday, drones attacked -- and temporarily halted -- a giant Saudi Arabian pipeline. Two days before that, four oil tankers were sabotaged at the key refueling port of Fujairah in the U.A.E.

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