The ongoing conflict in the Middle East has led to a virtual shutdown of shipping in the Strait of Hormuz, causing a severe supply crunch in the global energy market. As a result, crude oil prices have reached historic highs, signaling renewed volatility in international markets.
According to S&P Global Platts data, the spot price of Dubai crude for May delivery stood at $153.25 per barrel, surpassing the record high of $147.50 set by Brent futures in 2008. At the same time, the price of Oman crude futures rose to $147.79.
Market analysts say the current pricing structure is starting to lose its effectiveness due to the sudden shortage in supply. Asian refiners, in particular, which are heavily dependent on Middle Eastern oil, are facing rising cost pressures and are turning to alternative sources.
According to Reuters, the premium for Dubai crude has jumped to more than $56 per barrel, about a third of the total price. In February, the premium averaged less than $1. A similar trend has been seen for Oman crude.
Middle Eastern oil exports to Asia fell to about 11.7 million barrels per day in March due to the blockade of the Strait of Hormuz, significantly lower than the previous month and a decline of about one-third compared to the same period last year, according to calculations by analysis firm Kepler.
Meanwhile, Asian buyers are turning to African and American markets for alternative supplies, pushing up crude prices in Brazil and West Africa. Traders say many cargoes from the region have already been sold, adding to global supply pressure.
Analysts fear that if the crisis in the Strait of Hormuz lasts longer, its impact on the global economy could be deeper, especially putting pressure on energy-dependent industries and developing economies.