Crude Prices Surge in Europe as Asian Buying Tightens Market
Pipes near fuel and crude oil storage tanks at a refinery in Sines, Portugal.
Photographer: Goncalo Fonseca/BloombergCrude prices in Europe — which initially showed a muted reaction to the war in the Middle East — are now surging as aggressive buying by Asian refiners tightens the global market.
Unlike their Asian peers, refineries in Europe have very limited direct exposure to Middle East crude. They mostly purchase local or US grades, and the European market has been well supplied. But a rush by Asian buyers to replace Middle Eastern barrels lost due to output halts and shipping disruptions in the Strait of Hormuz has tightened availability elsewhere, particularly in the Atlantic Basin.