Updated
Updated · Bloomberg · Jun 23
Forties Crude Hits 2-Year Low as Middle Eastern Oil Swells European Supply
Updated
Updated · Bloomberg · Jun 23

Forties Crude Hits 2-Year Low as Middle Eastern Oil Swells European Supply

2 articles · Updated · Bloomberg · Jun 23

Summary

  • Forties crude traded Monday at its lowest level in two years in the Platts pricing window, signaling fresh weakness in the North Sea market.
  • Middle Eastern barrels heading to Europe after the Strait of Hormuz reopened have raised fears of a regional supply glut, pressuring benchmark-linked grades.
  • WTI Midland, another key component of the Dated Brent benchmark, also fell to a three-month low as the extra supply weighed on pricing.
  • Because Forties is one of six grades underpinning Dated Brent, the slide points to broader softness in the crude stream used to price global oil.

Insights

With Hormuz facing months of logistical delays, is the oil market's price plunge a premature and costly overreaction?
As a flood of oil meets shrinking global demand, are we entering a new era of chronically cheap energy?
Why do crippling war-risk insurance costs persist at Hormuz despite the new US-Iran memorandum of understanding?