Spot crude premiums ease from record highs despite Hormuz closure

Spot premiums for physical crude have slipped from record highs as refiners draw down inventories and cut processing to offset lost Middle East supply during the Iran war. The move suggests some easing in near-term physical tightness, though geopolitical disruptions are still supporting elevated prices. The article points to supply-chain stress rather than a broad demand shock.

Analysis

Spot premiums for physical crude have slipped from record highs as refiners draw down inventories and cut processing to offset lost Middle East supply during the Iran war. The move suggests some easing in near-term physical tightness, though geopolitical disruptions are still supporting elevated prices. The article points to supply-chain stress rather than a broad demand shock.