CommoditiesMedium•2 October 2026•
1 min read
Dated Brent Surges Above $120 Signaling Severe Physical Oil Squeeze
Key Facts
1Dated Brent surged above $120 per barrel despite ICE Brent futures slipping toward $101.
2Markets were impacted by drone attacks on tankers in the Strait of Hormuz and China reinstating its refined product export ban.
Dated Brent surged above $120 per barrel even as ICE Brent futures slipped toward $101, Oilprice.com reported. This significant price divergence indicates an extreme squeeze in the physical oil market, with immediate delivery cargoes commanding a premium of nearly $20 over the futures benchmark.
The market was impacted by escalating geopolitical tensions, including drone attacks on tankers in the Strait of Hormuz and China's decision to reinstate its ban on refined product exports. These supply constraints, coupled with European diesel stock releases, have intensified volatility in physical trading as global inventories face mounting pressure from trade restrictions and security risks.