Finance
European, African Crude Oil Prices Hit Records on Supply Disruptions Despite Ceasefire
Published by Global Banking & Finance Review®
Posted on April 9, 2026
3 min readLast updated: April 9, 2026
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Physical market crude prices in Europe and Africa have surged to record highs—North Sea Forties crude hit ~$146 and dated Brent surpassed $144—even as futures collapsed following a U.S.–Iran ceasefire, reflecting persistent supply disruption fears.
European, African Crude Oil Prices Hit New Records Despite Ceasefire
Record-High Crude Prices Amid Geopolitical Tensions
By Robert Harvey and Seher Dareen
LONDON, April 9 (Reuters) - European and African crude oil prices climbed to fresh records on Wednesday, defying a sharp selloff in oil futures after a U.S.-Iran ceasefire was reached on Tuesday, as traders priced in a prolonged disruption to physical oil supplies.
Impact of Ceasefire on Oil Futures and Physical Markets
The ceasefire announcement sent major benchmark Brent and WTI contracts tumbling 13% and 16% respectively on Wednesday to below $100 a barrel, as investors bet on the reopening of the Strait of Hormuz and a reduced geopolitical risk premium. [O/R].
However, prices in the physical market have yet to decline and some have even risen. The outright price of a barrel of North Sea Forties crude FOT-E reached an all-time high of $146.43 a barrel on Thursday, according to LSEG data.
Divergence Between Physical and Futures Markets
The divergence highlights strong competition from Asian and European refiners for non-Middle East barrels, driving up prices for prompt replacement crudes, such as those in Europe and Africa. It also shows that disruption is expected to persist.
"We are talking months before a return to the full supply chain, so certainly there will continue to be this big divergence between the physical and paper markets," said Sparta Commodities analyst Neil Crosby.
Physical Premiums Hit Records
PHYSICAL PREMIUMS HIT RECORDS
Strait of Hormuz and Regional Instability
Iran's continuing near-closure of the Strait of Hormuz and attacks on regional states' energy infrastructure have also pushed the premiums at which crude oil cargoes trade to all-time highs.
North Sea and Brent Premiums
Forties trades at a premium or discount to dated Brent BFO-, a physical benchmark for prompt cargoes. Dated Brent is trading almost $27 above June Brent futures, according to LSEG data, and Forties hit a record premium of $20.25 to dated Brent on Wednesday.
"The reaction [on futures prices] is expected, but we do not expect it will quickly translate into a material change in physical flows or production," consultancy Energy Aspects said,
It added that a temporary two-week ceasefire meant operators will not restart refineries and fields due to the risk of renewed shutdowns.
Other Major Grades and Global Pricing Impact
In the North Sea, other major grades Brent, Oseberg, Ekofisk and Troll were also bid to fresh record premiums on Wednesday. U.S. WTI Midland crude delivered to Europe traded at a $20.70 premium to dated Brent on Wednesday, also the highest ever.
The value of dated Brent is derived from the prices of the five North Sea crudes and WTI Midland. The rise in these premiums has wider significance for the oil market because dated Brent is used to price over 60% of globally traded crude. [CRU/E]
West African Crude Premiums
In West Africa, Angolan Cabinda crude was trading at around dated Brent plus $10 per barrel or even firmer on Wednesday, a trader said, a record high for that grade. [CRU/WAF]
(Reporting by Robert Harvey and Seher Dareen in London,Editing by Alex Lawler and Bernadette Baum)
Key Takeaways
- •Physical crude spot prices surged to new highs, with North Sea Forties near $146 and dated Brent above $144 amid Strait of Hormuz tensions.
- •Despite futures tumbling (Brent –13%, WTI –16%) on ceasefire hopes, physical markets remain volatile due to expected prolonged supply disruption.
- •Widening premiums—Forties trading ~$20 above dated Brent, WTI Midland ~ $20 above dated Brent, Angolan Cabinda ~ $10 above—highlight fierce competition for prompt barrels and structural market tightness.
Frequently Asked Questions about European, African crude oil prices hit records on supply disruptions despite ceasefire
1Why did European and African crude oil prices hit record levels?
Supply disruptions and strong demand from Asian and European refiners drove prices higher, despite a ceasefire reducing geopolitical risk.
2How did the U.S.-Iran ceasefire affect oil futures?
The ceasefire led to a sharp drop in Brent and WTI futures, falling 13% and 16% respectively, due to expectations of lower risk and supply recovery.
3What is causing the divergence between physical and futures oil prices?
Physical market prices remain high due to ongoing supply disruptions and slow recovery, while futures fell on news of a ceasefire.
4Which grades of crude oil saw record premiums?
North Sea Forties, other key North Sea grades, and U.S. WTI Midland delivered to Europe reached record premiums to dated Brent.
5How significant is dated Brent in global oil pricing?
Dated Brent prices over 60% of globally traded crude, so its premium reflects broader market trends.
