Asia’s oil buying spree tightens European and African markets

In an example of tightening markets, North Sea Forties crude surged to a $7.20 per barrel premium to dated Brent on Friday, the highest on record according to LSEG data. The paper markets surrounding North Sea physical prices also show tightness.

The first week of the short-term Brent swaps curve, known as contracts for differences, which indicates the dated Brent value, was trading $12.35 a barrel higher than the contract six weeks ahead on March 27, also a record.

"Globally, there are fewer barrels available, so the people who need them are bidding prices up," said Neil Atkinson, former head of the oil markets division at the International Energy Agency and a veteran oil analyst.

Shortages and stiff competition from Asian buyers looking to secure valuable barrels elsewhere have pushed up prices for European buyers, Morgan Stanley analysts said on Monday.