North Sea Oil Premiums Surge After Saudi Pipeline Shutdown

Physical premiums for North Sea oil climbed to record levels after Saudi Aramco informed European customers they would receive no supplies under long-term agreements next month.

Norway's Johan Sverdrup crude was offered at premiums up to $35 a barrel above the Dated Brent benchmark, surging from a 60-cent premium two weeks earlier.

The supply crunch follows an attack on Saudi Arabia's East-West pipeline, forcing European refiners into a buying frenzy with diesel prices exceeding $200 a barrel.