Physical crude oil prices across the Middle East, Europe and Africa climbed to two‑month highs during the week, with several contracts approaching $110 per barrel. The Dated Brent benchmark rose to $105.70 per barrel on Thursday, marking its highest level since late May and the first time it breached the $100 mark since early June. On Friday, the North Sea Forties crude, which is priced against Brent, reached $108.77 per barrel.
The price surge was driven by supply disruptions linked to geopolitical conflicts. Yemen’s Iran‑aligned Houthis attacked tankers in the Red Sea, forcing some Saudi Arabian shipments to be rerouted around Africa; the attacks followed the collapse of a preliminary U.S.–Iran peace deal and heightened concerns over exports through the Strait of Hormuz. Additionally, Kazakhstan announced a reduction in oil production after suspected Ukrainian drone attacks forced the closure of its main export terminal for CPC Blend crude on the Black Sea.
Spot premiums for the Middle East benchmark Dubai to swaps doubled to $12.74 per barrel, while Oman’s premium climbed to $12.62 per barrel, both reaching their highest levels since the end of May.
The article was generated with the support of artificial intelligence and reviewed by an editor, as noted in the Reuters disclaimer.