Oil Market Strengthens in Europe as Kazakh Barrels Run Short
Oil workers adjust flow valves on an oil pumping unit at an oilfield near Atyrau, Kazakhstan.
Photographer: Andrey Rudakov/BloombergThe oil market in Europe is strengthening sharply — bucking a global surplus — as reduced shipments from Kazakhstan and elsewhere tighten supply.
Smaller flows of Kazakhstan’s CPC Blend, as well as disruptions in Libya and some North Sea fields, have pushed up physical prices in the North Sea and Mediterranean. WTI Midland, a key grade for setting global benchmark Dated Brent, traded at a premium of $2.90 Tuesday, the highest in more than a year. The price of Azeri Light, a favorite among Mediterranean refiners, also soared to a one-year high.