-- Signs of tightness in the oil market are proliferating as the supply situation is set to tighten further due to the maritime blockade, Commerzbank said in a Tuesday note.
According to data from Kpler, Iran's oil exports stood at 1.84 million barrels per day in March and 1.71 million barrels per day so far in April, the bank noted.
The price differentials between the various gasoil and Brent contract maturities on the forward curves are signaling tightness, while the price premium for physical crude on the spot market is even larger, Commerzbank said.
Another sign of tight supply is the sharp rise in official selling prices for oil deliveries from the Gulf region. Though Saudi Arabia can divert its oil via the East-West Pipeline to the Red Sea and export it from there, Iraqi and Kuwaiti oil exports have been largely paralyzed by the closure of the Strait of Hormuz, the bank said.
For Arab Light, buyers in Asia must now pay a record-high premium of almost US$20/barrel over the Oman/Dubai benchmark. In April, the price premium was still at $2.5. Kuwait has also demanded a premium of $17/barrel over Oman/Dubai for oil supplied to Asia.