Global Oil Market Hit by Scramble for Immediate Supplies

By Al Mayadeen English

A global scramble for immediate oil supplies drives North Sea crude bids and pushes prices above $140, as traders and refiners compete for scarce prompt barrels.

A sharp scramble for immediately available oil cargoes is gripping the global crude market, as traders and refiners rush to secure supplies amid heightened uncertainty linked to the fragile Iranian ceasefire.

While investors have focused on geopolitical developments, market activity has been defined by a desperate hunt for prompt barrels, with buyers competing aggressively for near-term deliveries.

In the North Sea, the world’s key physical crude benchmark, traders submitted 40 bids for cargoes this week, but only four offers were matched, highlighting a severe imbalance between demand and available supply.

Cargoes scheduled for delivery in the coming weeks reportedly changed hands at unprecedented prices exceeding $140 per barrel.

Refiners forced into global search

Outside Europe, refiners have increasingly turned to alternative regions in search of crude, triggering:

Unusual cross-regional trades

Rising premiums for prompt delivery of oil

Intensifying competition for spot cargoes

The market shift reflects a growing premium on immediate availability over long-term contracts.

Tightening physical market conditions

The surge in demand for near-term supplies underscores tightening conditions in the physical oil market, where logistical constraints and geopolitical uncertainty are amplifying price volatility.

Market participants say the current environment reflects a broader shift toward scarcity-driven pricing in the short term.

The global oil market is experiencing an acute scramble for prompt crude supplies, with physical prices surging and competition intensifying as refiners and traders race to secure available barrels.

Iran war reshapes global oil market as prices surge 50%: Axios

The energy shock triggered by the war on Iran is poised to drive lasting changes in the structure of the global multitrillion-dollar oil market, transforming what was once a relatively open system into a more fragmented and weaponized landscape.

Oil prices have surged significantly since the outbreak of the war, rising by around 50% compared to pre-war levels.

At the same time, prices in the physical oil market have reached record highs, as countries and companies compete for increasingly limited supplies. A key factor behind this surge is Iran’s continued closure of the strategic Strait of Hormuz, a vital artery for global energy flows.

Daniel Yergin described the current crisis as “the mother of all supply chain disruptions.”

According to available data, the disruption linked to the Iran war has removed approximately 16% of global oil supply, surpassing previous crises such as:

The 1990 Iraq invasion of Kuwait (8%)

The 1973 oil embargo (8%)

The 2011 Libya war (2%)

The 2022 Ukraine war (2%)

From cooperation to fragmentation

The last major instance of oil being used as a geopolitical weapon dates back to 1973, when Arab members of OPEC imposed an oil embargo on the US, causing prices to surge dramatically over the following decade.

That crisis reinforced the need for global cooperation in energy markets. "Multinational, international cooperation is preferable to individual action," Yergin noted.

A shifting global energy doctrine

Recent analysis suggests the world may now be drawing different conclusions.

Jason Bordoff and Meghan O'Sullivan argue that in today’s fragmented and war-driven environment, countries may increasingly view energy as a strategic tool rather than a shared resource.

At the center of this shift is Iran’s ability to leverage the Strait of Hormuz as a pressure point, creating a major disruption in global oil flows. This development could mark a turning point for the global energy system.

The ongoing crisis signals a potential long-term transformation of the oil market, one defined less by cooperation and stability, and more by competition, fragmentation, and geopolitical leverage.