The European and African oil markets are tightening as Asia buys more to fill shortages caused by Iran's conflict. Middle East supply is down 10M barrels/day, impacting global prices. North Sea Forties crude hit record $7.20 premium to dated Brent.
"Globally, there are fewer barrels available, so prices are rising," Neil Atkinson, former IEA oil markets head, explained.
Gasoline and crude cargoes are moving eastward, reducing Europe's own supply. U.S. WTI Midland crude saw a record $9.50 premium for European delivery.