Global refineries paying record $150 per barrel for crude amid Hormuz blockade

Refineries in Europe and Asia are buying certain grades of crude oil at record-high prices—around $150 per barrel, well above futures market levels, Reuters reports.

In March, Brent crude futures rose to $119.50 per barrel, the highest since 2022, though still below the 2008 record of $147.50 per barrel.

The blockade of the Strait of Hormuz and disrupted Middle East supplies have sparked competition among European and Asian refineries for barrels that can be delivered quickly. Reuters notes that the effective closure of the waterway halted oil flows of approximately 12 million barrels per day.

The main driver of prices, oil trader Adi Imsirovic explained, is panic. “When there is a real, physical shortage, people ‌are not ⁠thinking about July delivery - June loading and hence June futures prices - but oil NOW,” he said.

The U.S. Energy Information Administration (EIA) warned on April 7 that fuel prices could continue to rise for several months even after the Strait of Hormuz reopens, citing uncertainties about possible supply disruptions. The agency added that forecasting remains difficult because “just as we have never previously observed a closure of the strait, we have also never seen its reopening.”