The global oil market is becoming increasingly regionalised due to militant attacks in the Red Sea and skyrocketing freight rates making more local supplies desirable.
A decrease in tanker traffic through the Suez Canal is encouraging a divide, with one trading area centred around the Atlantic Basin, including the North Sea and the Mediterranean, and another focused on the Persian Gulf, the Indian Ocean, and East Asia.
Despite ongoing crude movement between these regions, the longer and costlier route around Africa’s southern tip is being used less, marking a shift in buying patterns. For instance, some European refiners opted out of buying Iraqi Basrah crude last month, while the North Sea and Guyanese cargoes have seen increased interest from the continent.
In Asia, demand for Abu Dhabi’s Murban crude surged, triggering a mid-January price spike. At the same time,…
