Crises support high prices

摘要

The oil market is dealing with two unrelated crises, both of which are supporting high prices. The loss of around 1.2mn b/d of Libyan exports has had an immediate impact on the crude market. European refin- ers, which normally take around four-fifths of Libya's sup- plies, are struggling to find prompt alternatives for the light sweet short-haul grades. Straight-run refiners can make good quality jet and diesel from Libyan crudes without the need for upgrading or desulphurisation, and the lost supplies will be difficult to replace. As European buyers boost pur- chases, premiums on alternative light sweet crudes have soared to two-year highs this month.