LONDON: Sky-high refining margins for diesel and gasoline in Europe and the United States, driven by a cutoff in Russian supply, has sent prices for some types of physical crude oil to all-time records according to traders.
The dearth of fuel in the major consuming countries just as the summer driving season in the United States kicks off has lifted asking prices near and above historic peaks for lighter and medium oil types from West Africa to the North Sea.
The sharp rises underscore a tight market and the difficulty of bringing down transport fuel costs, which have thrust inflation toward 40-year highs and triggered recession fears in the United States and some parts of Europe.
Offers for medium sweet Forcados Blend and Escravos crude from Nigeria have approached an $8 premium compared to dated Brent, traders said, their highest ever according to Refinitiv Eikon data.
