Oil prices have surged to their highest levels in 2023 due to investor concerns about a potential supply shortage in the fourth quarter. Amid the keen attention of oil investors and traders regarding a potential oil price surge approaching $100 per barrel, certain types of crude oil have already surpassed this significant milestone, underscoring expectations of a constrained supply.
The outright price of Nigerian crude, specifically Qua Iboe, exceeded the $100 per barrel mark on Monday, according to data from the London Stock Exchange Group (LSEG). Additionally, Malaysian crude, known as Tapis, reached $101.30 per barrel last week, as reported by Bjarne Schieldrop, an analyst at the Swedish bank SEB.
Oil prices have surged to their highest levels in 2023 due to investor concerns about a potential supply shortage in the fourth quarter. This concern stems from Saudi Arabia and Russia extending their supply cuts, with these two nations being the largest producers in the OPEC+ group, where most other member countries are also limiting their output.
Brent oil futures, serving as a global benchmark, reached as high as $94.89 on Monday, while the related benchmark used for trading a significant portion of the world’s physical oil cargoes, known as dated Brent, stood just above $96, according to LSEG.
Qua Iboe and some other crude oils linked to Brent are already trading above $100 because their pricing is based on the price of dated Brent plus a cash differential or premium, currently assessed at around $4.25 per barrel by LSEG.”
