Europe, Africa Crude Market Tightens on Red Sea Disruptions, China Demand

• The Brent crude market structure and some physical markets in Europe and Africa reflect tighter supply, resulting partly from concern about shipping delays due to vessels avoiding the Red Sea, according to traders, LSEG data, and analysts.
• Disruptions, alongside outages and heightened Chinese demand, amplify competition for crude supply not transiting the Suez Canal. European markets are notably affected, as disruptions prompt diversions from the Red Sea following airstrikes in Yemen by the United States and Britain.
• Brent crude futures exhibit heightened bullishness, with the first-month contract premium over the six-month contract reaching $2.15 a barrel. European refiners face the most significant impact on the physical front, with a notable decrease in Middle Eastern crude heading to Europe.

(Source: The Daily Star)