The physical crude oil market is currently experiencing a pronounced period of tightening, marked by Dated Brent rising above $120 a barrel. This upward movement in the physical benchmark occurs despite ICE Brent futures trading closer to $101 per barrel, as reported by OilPrice.com.
Several factors have contributed to the recent volatility observed in trading, according to the publication. These include the release of European diesel stocks, incidents involving unmanned aerial vehicles targeting tankers in the Strait of Hormuz, and China's re-imposition of its export restrictions on refined products.
While ICE Brent has edged downwards, the trajectory of the physical oil market, specifically indicated by Dated Brent, suggests a diverging trend, pointing to considerable pressure within the immediate supply landscape.