North Sea Dated crude hit $142.15/bl on 2 April, the final trading day before Easter, the highest since mid-July 2008.
The benchmark rose by $17/bl from the previous session — the largest daily increase on Argus records dating back to January 1990 — following fresh comments by US president Trump about the war in Iran.
The conflict has removed close to 600,000 b/d of medium sour crude supply from Europe after Iraqi Basrah exports halted due to the risk of missile and drone attacks on tankers in and around the strait of Hormuz. Competing Asian demand for alternative supply has added further upward pressure on prices.
Price differentials for all North Sea grades that Argus assesses — sweet and sour — are at record highs. Prices have also reached record levels for US WTI, Caspian, Algerian, Libyan, Brazilian, Guyanese and some west African grades. Traders say such high values, combined with elevated freight rates, could push refinery margins into negative territory in the coming weeks and force run cuts unless crude prices ease or product cracks strengthen.
Diesel and jet fuel prices in Europe remain high, reflecting the region's heavy reliance on imports from the Mideast Gulf. But cracks for some other key products — including gasoline — have already plunged.
Volatility has added to trading challenges. On 10 March, Trump's comment that the war was "practically over" sent Dated down by more than $15/bl, the largest daily drop on record.
