💢 On Tuesday, some shipments of oil delivered physically in Europe exceeded the $130 per barrel mark

💢 On Tuesday, some shipments of oil delivered physically in Europe exceeded the $130 per barrel mark, approaching record highs recorded in April, as buyers sought alternative sources of supply other than oil from the Middle East. This is due to increasing disruptions affecting Saudi-related supplies as conflict in the region intensifies, forcing buyers in need of immediate supply to return to the spot market.

The key point is that this is a real shortage in the market, not just a speculative price increase.When oil shipments destined for replacement are sold in Europe at prices above $130 per barrel, this indicates an immediate shortage of oil ready for delivery and a significant price increase due to the supply guarantee. This usually leads to an increase in oil supplies from the Atlantic region and other regions outside the Middle East to Europe, widens supply price differences in the short term, and increases volatility in transportation, refining economics, and pricing.

The market's signal is clear: the risk of supply disruptions from Saudi Arabia and other Middle Eastern countries is now directly reflected in the extreme spot prices for real oil shipments.

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