A Saudi east–west pipeline outage has forced European refiners to compete for
replacement barrels, lifting spot crude premiums and raising procurement costs.
After an attack on a pipeline to the Red Sea, Aramco is seeking to increase
shipments via the Strait of Hormuz; this week Asian buyers purchased tens of
millions of barrels of Saudi crude near the strait, leaving those barrels
farther from Europe. Aramco has told European customers it cannot meet some
long‑term contract deliveries next month. On Friday North Sea spot premiums
jumped to record levels; traders said Norway’s Johan Sverdrup grade—close in
quality to Saudi crude—was bid up to $35/bbl over Brent spot, versus about
$0.60/bbl two weeks earlier. The spot rally indicates European refiners are
paying up to secure supply and maintain run rates amid fuel tightness; regional
diesel has risen above $200/bbl.
