European and African crude oil prices climbed to record levels on Wednesday, even as global oil futures fell sharply after a U.S.–Iran ceasefire announcement.
The divergence reflects continuing disruptions to physical oil supplies and persistent uncertainty around Middle East shipping routes.
Benchmark oil contracts declined after the ceasefire, with Brent and WTI dropping below $100 a barrel as investors anticipated the reopening of the Strait of Hormuz.
However, the physical crude market has not mirrored that decline, with some grades continuing to rise in price.
North Sea Forties crude reached a record $146.43 per barrel on Thursday, according to LSEG data, highlighting the strong demand for alternative supplies.
Traders say Asian and European refiners are aggressively seeking non-Middle East barrels amid fears that supply constraints could persist.
Analysts note that Iran’s continued near-closure of the Strait of Hormuz and attacks on regional energy infrastructure have driven record premiums for physical crude cargoes.
As a result, the price gap between physical oil and futures markets has widened significantly.
Industry experts warn that the disruption could last months, as companies remain cautious about restarting refineries and production facilities during the temporary two-week ceasefire.
The uncertainty has kept buyers bidding up European and African crude grades as refiners rush to secure stable supplies.