Oil Refiners Pay Huge Premiums to Replace Middle East Crude

Refiners are paying sharply higher premiums to secure specific crude grades to replace missing Middle East cargoes, signalling acute supply dislocations tied to the Iran war. The squeeze is driving volatility in energy and commodities markets and could raise refined-product costs and strain supply chains and trading flows for oil-dependent firms.

Analysis

Refiners are paying sharply higher premiums to secure specific crude grades to replace missing Middle East cargoes, signalling acute supply dislocations tied to the Iran war. The squeeze is driving volatility in energy and commodities markets and could raise refined-product costs and strain supply chains and trading flows for oil-dependent firms.