Physical Oil Markets Tighten as Dated Brent Surges Above $120
Source Summary
Dated Brent crude surged above $120 per barrel on Friday, October 2, 2026, signaling a sharp tightening in physical oil markets despite ICE Brent futures slipping toward $101. The divergence reflects multiple supply pressures: European diesel stock releases, drone activity in the Strait of Hormuz, and China's reinstatement of a refined product export ban have driven volatile trading this week.
Why it matters
The divergence between physical and futures prices indicates acute supply constraints in the global oil market, with immediate implications for refinery operations and fuel availability.
