How Do You Replace Millions of Barrels of Russian Oil a Day?
The global market is facing its biggest disruption in more than three decades.
The global oil market is suffering what’s starting to look like the biggest disruption since the 1990-91 Gulf War.
A large chunk of Russian crude and refined products exports are not finding buyers now and signs point to even more trouble by next week. Brent and West Texas Intermediate crude have surged above $105 a barrel for the first time since 2014. In late trading in London on Tuesday, WTI was up more than 10% in one of the biggest one-day spikes ever. More importantly, yardsticks that measure the short-term tightness of the market are surging. The price gap between a barrel of Brent delivered now and one in one year has widened to a record of more than $23.50 a barrel, surpassing the level after Saddam Hussein invaded Kuwait almost 32 years ago.