European Oil Prices Surge as Kazakh Shipments Drop, North Sea Supply Tightens

The oil market in Europe is strengthening sharply — bucking a global surplus — as reduced shipments from Kazakhstan and elsewhere tighten supply.

Smaller flows of Kazakhstan’s CPC Blend, as well as disruptions in Libya and some North Sea fields, have pushed up physical prices in the North Sea and Mediterranean. WTI Midland, a key grade for setting global benchmark Dated Brent, traded at a premiumBloomberg Terminal of $2.90 Tuesday, the highest in more than a year. The price of Azeri Light, a favorite among Mediterranean refiners, also soared to a one-year highBloomberg Terminal.