Spot crude premiums jumped as buyers paid up for non-Middle Eastern barrels amid Strait of Hormuz disruptions, nearing record highs.
Physical oil cargo premiums surged to nearly $150 a barrel in mid-April, driven by fears of supply disruptions after Iran blocked the Strait of Hormuz. Buyers scrambled for prompt, non-Middle Eastern barrels, pushing spot prices above the 2008 peak for North Sea Forties crude.
The spike followed escalating conflict in the region, which heightened concerns over immediate supply availability. Premiums for available cargoes rose sharply as markets priced in the risk of prolonged disruptions.
Analysts cautioned that while the premium collapse may follow, the underlying supply risks could sustain elevated prices in the near term.