Brent oil futures have jumped 10per cent since the start of the year but the physical market is still racing ahead, with differentials for some grades hitting multi-year highs, suggesting a tight market will push the futures rally on. There clearly is physical tightness," a North Sea oil trader said. Graphic - Atlantic Basin crude differentials jump: https://graphics.reuters.com/OIL-DEMAND/klvykqjxbvg/chart_eikon.jpgThe tightness began in the Atlantic Basin and spread as Asian buyers were forced to look for cheaper cargoes elsewhere. "Turns out Omicron wasn’t so bad and supply issues were worse than anticipated," a U.S. crude trader said. The U.S. Energy Information Administration said on Wednesday crude oil stockpiles fell more than expected to their lowest since October 2018.

Source: Libya Today January 16, 2022 12:26 UTC